Bitcoin (BTC) and Ethereum (ETH) managed to arrest its downtrend and experienced a surge in value above $20,000 and $1,400 respectively on Saturday morning. However, the increase could be attributed to a weaker US dollar, which turned negative after February labor data showed slower wage growth, indicating a reduction in inflationary pressures.
The statement indicated that if the Federal Reserve slows down the pace of interest rate hikes, it could potentially make the US dollar less attractive, which could lead to increased demand and higher prices for cryptocurrencies.
It is necessary to highlight that the cryptocurrency market is known for its high volatility with frequent price fluctuations. In the past week, Bitcoin and Ethereum experienced significant losses, with BTC losing 10.88% and ETH losing 10.94% of their value.
The losses incurred by Bitcoin and Ethereum have resulted in the global cryptocurrency market cap falling below $900 billion to reach $890 billion. While there are signs that the decline may be slowing, BTC is showing the potential to regain some of its lost ground.
The reversal can be attributed to a weaker US dollar and the recent weaker-than-expected US jobs data. It is important to note that the cryptocurrency market is highly volatile, and price fluctuations are expected.
Silicon Valley Bank’s liquidity crisis sparks concern for cryptocurrencies
Recent reports indicate that Silicon Valley Bank, a key financial institution for venture capital firms, is facing a liquidity crunch. The development has sparked concerns about possible wider financial implications, leading to a decline in the value of cryptocurrencies.
It is important to note that Silicon Valley Bank is a major financial institution used by many venture capital firms, which may have an indirect impact on the crypto market. While this isn’t a direct hit to the cryptocurrency sector, it does highlight how interconnected the financial world can be, with developments in one area potentially affecting another.
As a result, news of Silicon Valley Bank’s liquidity issues has had a negative impact on the crypto market.
Weak Dollar Undermines Crypto Market
The US dollar, which was on an upward rally, failed to sustain its momentum and turned weak on the day. This was due to the latest labor data for February, which showed slower wage growth, suggesting easing inflationary pressures.
This could cause the Federal Reserve to moderate the pace of interest rate hikes, reducing the greenback’s appeal.
Despite the US economy adding jobs faster in February, slower wage growth and a rise in the unemployment rate have cooled hopes of an interest rate hike of 50 basis points during the upcoming Federal Reserve meeting.
The crypto market had suffered heavy losses over the past week, with both Bitcoin and Ethereum losing around 11% in value. However, the fall began to reverse as the US dollar weakened, allowing BTC to regain some of its lost ground.
In the coming weeks, the performance of the cryptocurrency markets and the US Dollar remains uncertain due to the ongoing pandemic and recent market volatility. Given recent developments in the US banking sector, the focus now shifts to the CPI print and overall financial conditions.
Peter Schiff Recommends Selling BTC for Gold in Bleeding Market
Peter Schiff, a prominent critic of cryptocurrencies, recently advised investors to sell their bitcoin (BTC) holdings and invest in gold as the crypto market continues to post losses. Schiff, who has long been a vocal skeptic of bitcoin, predicted that the industry would face more bankruptcy cases, which could further depress the market.
Schiff’s statement came in response to the recent stock market crash of Silvergate Bank, which had a significant impact on bitcoin and other cryptocurrencies. While some investors may disagree with Schiff’s outlook, some crypto enthusiasts remain optimistic about the future of the industry.
For example, Schiff’s son, Spencer Schiff, contradicted his father’s position, saying that blockchain companies and other cryptocurrencies may crash, but bitcoin will float as a lifeboat.
bitcoin price
Bitcoin Technical analysis suggests a significant bearish trend for the BTC/USD pair as it broke the double-bottom support at $20,350. An immediate support for bitcoin lies at $18,430.
If this level breaks, it could increase the selling pressure, which could result in a further decline towards the $16,400 level.
On the other hand, the first hurdle for bitcoin lies at the $20,300 resistance level. If bitcoin breaks above this level, it could trigger buying pressure and potentially push its price towards the $21,400 level.
If the bullish momentum continues, there are chances that bitcoin may even reach the $25,000 mark.
Top 15 Cryptocurrencies to Watch in 2023
Take a look at Industry Talk’s carefully selected roster of the top 15 altcoins in 2023, curated by Cryptonews. The list is regularly updated with fresh ICO projects and altcoins, so be sure to check back frequently for the latest developments.
Disclaimer: The Industry Talks section features insights by crypto industry players and is not part of the editorial content of 0x0news.com.
Find the best price to buy/sell cryptocurrency