• Tue. Dec 5th, 2023

Bitcoin, Ethereum, Dogecoin Surge Amid Financial Stability Woes, Analyst Sees Apex Crypto Breaching $25K As FOMO Grips Investors

ByMehab Qureshi

Mar 13, 2023
Bitcoin, Ethereum, Dogecoin Surge Amid Financial Stability Woes, Analyst Sees Apex Crypto Breaching $25K As FOMO Grips Investors

Major coins traded in the green on Monday evening after U.S. regulators stepped in to back deposits at Silicon Valley Bank SIVB and Signature Bank SBNY, sparking hopes that the near-catastrophic banking meltdown could encourage the Federal Reserve to take a more dovish monetary stance. 

Cryptocurrency Gains (+/-) Price (9:30 p.m EST)
Bitcoin +8% $24,378
Ethereum +3.66% $1,679
Dogecoin +1.43% $0.072

What Happened: Apex cryptocurrency Bitcoin BTC/USD  surged above $24,000 for the first time in over two weeks. Ethereum ETH/USD was up about 3.60% to change hands above $1,600. Dogecoin DOGE/USD was trading at $0.072, up 1.43% in the last 24 hours.

At the time of writing, the global crypto market capitalization stood at $1.08 trillion, an increase of 4.65% over the last day.

Top Gainers
Cryptocurrency Gains (+/-) Price (9:30 p.m EST)
Conflux +35% $0.26
Rocket Pool +13.11% $42.60
OKB +10.55% $47.39

US stocks finished lower on Monday, as the S&P 500 and Nasdaq Composite dropped 0.15% and 0.45%, respectively. Despite the losses, some investors remained hopeful that the financial shock could lead the Federal Reserve to postpone interest rate hikes, helping to contain the losses.

Crypto-related stock Marathon Digital Holding MARA spiked 25% on Monday after it announced that it still has access to $142 million at Signature Bank. 

Investors will be closely watching Tuesday’s release of the Consumer Price Index for February as they decide where to place their bets. 

See More: Best Crypto Day Trading Strategies

News Highlights: Monday’s explosive Bitcoin rally caught traders who were expecting a bearish market off guard, resulting in the liquidation of over $81 million worth of short positions in the cryptocurrency. 

Binance on Sunday announced its intention to convert $1 billion worth of Binance USD BUSD/USD into Bitcoin, Ether, BNB Coin BNB/USD, and other digital tokens. 

Meta Platforms Inc META is pausing its digital collectibles initiative to focus on new ways to support creators, people, and businesses. One year after announcing plans to allow sharing of digital collectibles on its Instagram platform, Stephane Kasriel, Meta’s Commerce and Fintech lead, tweeted the news of the change. 

Analyst Notes: “Bitcoin is rallying as financial stability risks sent Treasury yields crashing. In a scramble to avoid another massive bank run, Federal regulators stepped in as some Americans grew skeptical of traditional banking,” said Edward Moya, senior market analyst at OANDA.

Moya said that Bitcoin’s rally comes at a time when some banks with crypto ties have come under “tremendous pressure.” 

“Regulation is not just going to hit crypto, but also the banks.  It appears that the biggest one-day rise since the FTX turmoil is a sign that some investors believe that DeFi solutions support the case for holding cryptos,” said Moya.

Michael van de Poppe, founder and CEO of Eight Trading, is seeing a massive move of Bitcoin toward the next resistance zone at $21,600. With the trend back up, his proposed strategy is to buy the dip on S/R flips in anticipation of a further bullish move. He believes that if the price stalls and consolidates around the resistance at $23,300 to 23,600, then the altcoins should continue their gains.

An S/R flip is a “support/resistance flip.” That is when support becomes resistance or resistance becomes support.

Data analytics platform, Santiment, recently suggested that FUD (fear, uncertainty, and doubt) may have been overblown. “It’s recommended to keep an eye on the price dominance of Bitcoin vs. other top cap altcoins. BTC had been giving up a lot of ground to alts to start the year, and this may be a nice signal of a trend change for the Bitcoin maxis,” the data platform said in a blog post.

According to Santiment, it’s recommended to watch out for any significant spikes in FOMO and discussions about a potential $25,000 Bitcoin price. “We did see a pretty huge spike when Bitcoin soared above $24,000 earlier today, which seemed to stop the price rally in its tracks. But if the euphoria tapers down a bit, it could be a good sign that we will indeed broach this level once again,” the platform added.

Pseudonymous analyst Kaleo was bullish on the last weekly close, noting the clean hammer wicking right off the heavy-term support. The analyst believes $40,000 is still a major magnet for Bitcoin..

Read Next: Web3 Token Surpasses Bitcoin, Ethereum In Weekly Gains With 33% Surge On Microsoft Tie-Up

Image and article originally from www.benzinga.com. Read the original article here.