Bitcoin (BTC) and Ethereal (ETH) managed to stop its downward trend and saw a rise in value above $20,000 and $1,400, respectively, early Saturday morning. However, this increase can be attributed to a weak US dollar, which turned negative after February jobs data showed slower wage growth, indicating easing inflationary pressures.
The statement indicated that if the Federal Reserve slows the pace of interest rate hikes, it could make the US dollar less attractive, leading to higher demand and higher prices for cryptocurrencies.
It is essential to highlight that the cryptocurrency market is characterized by its high volatility, with frequent price fluctuations. In the previous week, Bitcoin and Ethereum saw considerable losses, with BTC falling 10.88% and ETH losing 10.94% of its value.
Losses suffered by Bitcoin and Ethereum have resulted in the global cryptocurrency market capitalization falling below $900 billion, reaching $890 billion. However, there are signs that the decline may be slowing, with BTC showing the potential to make up some of the lost ground.
This reversal can be attributed to the weakening US dollar and recent weaker than expected US jobs data. It is important to note that the cryptocurrency market is very volatile and price fluctuations are to be expected.
Silicon Valley Bank's Liquidity Crisis Raises Cryptocurrency Concerns
Recent reports indicate that Silicon Valley Bank, a major financial institution for venture capital firms, is facing a liquidity crisis. This development has raised concerns about the potential broader 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 could have an indirect impact on the crypto market. While this is not a direct hit on the cryptocurrency sector, it does highlight how interconnected the financial world can be, with developments in one area potentially affecting another.
As a result, the crypto market has been negatively affected by the news of Silicon Valley Bank's liquidity problems.
The weaker dollar supports the crypto market
The US dollar, which had been on a bullish rally, was unable to maintain its momentum and weakened during the day. This was due to the latest employment data for February, which showed slower wage growth, suggesting a possible easing of inflationary pressures.
This could lead the Federal Reserve to maintain a moderate pace of interest rate hikes, thus reducing the attractiveness of the dollar.
Even as the US economy created jobs rapidly in February, slower wage growth and a rising unemployment rate have tempered expectations for a 50 basis point interest rate hike over the summer. next Federal Reserve meeting.
The crypto market had been facing significant losses over the past week, with Bitcoin and Ethereum losing almost 11% of their value. However, the decline began to fade as the US dollar weakened, causing BTC to regain some of the lost ground.
In the coming weeks, the performance of the cryptocurrency market and the US dollar will remain uncertain due to the ongoing pandemic and recent market volatility. Attention now turns to the CPI print and general financial conditions, given recent developments in the US banking sector.
Peter Schiff advises selling BTC for gold amid a bleeding market
Peter Schiff, a prominent cryptocurrency critic, has recently advised investors to sell their Bitcoin (BTC) holdings and invest in gold, as the cryptocurrency market continues to see losses. Schiff, who has long been skeptical of Bitcoin, has predicted that the industry will face more bankruptcies, which could further depress the market.
Schiff's statement came in response to the recent fall in the Silvergate Bank stock market, which has had a significant impact on Bitcoin and other cryptocurrencies. While some investors may disagree with Schiff's views, some cryptocurrency enthusiasts remain optimistic about the future of the industry.
For example, Schiff's son, Spencer Schiff, responded to his father's post, stating that while blockchain and other cryptocurrency companies could collapse, Bitcoin would stay afloat like a lifeboat.
bitcoin price
Bitcoin Technical analysis suggests a significant downtrend for the BTC/USD pair as it has breached the double bottom support level of $20,350. The immediate support level for Bitcoin is at $18,430.
If this level is broken, the selling pressure could build, resulting in a further drop towards the $16,400 level.
On the other hand, the first hurdle for Bitcoin is 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 is a chance that Bitcoin will reach the $25,000 mark.
Top 15 Cryptocurrencies to Watch in 2023
Take a look at Industry Talk's handpicked list of the top 15 altcoins to watch in 2023, curated by Cryptonews. The list is regularly updated with new ICO projects and altcoins, so be sure to check back often for the latest developments.
Disclaimer: The Industry Talk section presents information from crypto industry players and is not part of the editorial content of Cryptonews.com.
Find the best price to buy/sell cryptocurrencies
