Concerns about the vulnerability of the cryptocurrency industry have grown following bank failures.
The recent failures of crypto-focused banks such as Silvergate Bank, Signature Bank, and Silicon Valley Bank have once again highlighted concerns about the vulnerability of the industry and the unique nature of the crypto industry. Regulated US banking, as these banks were some of the largest digital banks by asset class.
The market initially reacted negatively, with bitcoin plunging below $20,000 on Friday as clients en masse withdrew their money ahead of the bust, reaching the key 200 SMA area, closing the session above it.
The Federal Reserve announced a massive injection of liquidity into the banking system.
From there, the recovery began, we already saw bitcoin rise on Saturday, but it was on Sunday that buying accelerated after the Federal Reserve announced a massive injection of liquidity into the banking system, when the SEC and CfTc made a joint statement Issued. Stating that he is a hardworking politician and is taking appropriate steps to bring stability to the markets.
The appetite for risk-on assets is rising again as US regulators take action to contain any potential contagion and boost confidence in the financial sector.
A new slowdown in the development of information consolidating the cryptocurrency market.
Inflation is expected to be 6% in February, which would translate into the eighth straight month of recession, if we add to the bets that analysts at major investment houses are placing on a break in rate hikes. Due to the banking crisis, we may have a catalyst to strengthen the price of the cryptocurrency.
$25,250, a key level in bitcoin.
Last year we saw bitcoin reach this level of $25,250 in August 2022, then pull back to its main trend line to fall to around $15,480 in November of the same year. Since then, the main cryptocurrency has risen strongly, reaching the top again in what we might call a sideways move.
$25,250 appears to be a key level, its overcoming in the crypto market can be confirmed in the market zone, a daily theoretical bubble break above the above level will set the target for a second blow already to $29,360. On the contrary, it Another higher speculative target has triggered a breakout of a lateral extension to $35,000.
So, that will be as much as we’ll have our eye on IG.
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