For the week from March 10 to March 17, Bitcoin added more than 28%, rising from $20,220 to $26,038. For the whole week, only one trading session for BTC was in the red – on Wednesday, March 15, the historically first cryptocurrency in the world fell by 1.5%. At the same time, a nine-month high of $26,533 was shown the day before.
What caused such rapid growth? By and large, the only catalyst was the problems faced by US banks, and specifically the liquidation of three: Silvergate Bank, Silicon Valley Bank and Signature Bank. The American authorities were forced to urgently take measures so as not to undermine the confidence of investors. However, at least in the short term, the banking sector has clearly caused concern among financiers. Bitcoin has become a safe haven that can allow you to save and multiply money.
It is worth noting that not everyone was enthusiastic about the growth of BTC. According to the investment company ByteTree Asset Management, the number of bitcoins held by various bitcoin funds turned out to be the smallest in almost a year and a half. It seems that big business does not believe in the longevity of BTC. In turn, Morgan Stanley, in this difficult time for the economy, declares that bitcoin is a speculative asset.
But investors with small capital and individual large players, on the contrary, are increasing their positions. Account holders ranging from 10 to 10,000 BTC have bought more than $821 million worth of cryptocurrencies, according to data from analyst firm Santiment.
Several opinions have been expressed about whether or not to invest in the historically first cryptocurrency. Economist Peter Schiff and Mad MoneyGram host Jim Cramer are calling for bitcoin sales. But the author of the book “Rich Dad Poor Dad” Robert Kiyosaki (Robert Kiyosaki), on the contrary, calls for buying BTC and waiting for a crisis.
From the standpoint of technical analysis, Bitcoin is now in a bullish trend. The level around $25,200, which was resistance, has now become support. And the aforementioned March 2023 high of $26,533 is the current resistance level.
The index of fear and greed for the week rose to the neutral zone. At the moment its meaning
Ethereum over the past week showed a more modest increase compared to bitcoin – about 21%. The dynamics of the second largest cryptocurrency by capitalization is similar to BTC: six days of growth and a fall of 2.81% on Wednesday, March 15. The largest growth (over 7%) was demonstrated on Sunday, March 12, when the closure of Signature Bank was announced.
In general, Ethereum’s rise was fueled by the same banking collapse that helped BTC take off. Otherwise, the brainchild of Vitalik Buterin is all business as usual – preparations for the Shanghai hard fork continue. During the week, the update was tested on the Goerli network.
Also on March 16, it was finally announced when exactly Shanghai would be implemented. Date
selected Sunday 12 April.
Some tension for investors in Ethereum is added by ongoing applications for recognition as a security. The head of the SEC, Gary Gensler, believes that all cryptocurrencies using the Proof-of-Stake (PoS) consensus algorithm should be regulated like securities. Ethereum has recently been using PoS.
The technical picture is now in favor of the bulls in all cryptocurrencies. Ethereum is no exception. The next important mark to pass is the resistance level around $1,790. The support level is around $1,615.
The price of Avalanche’s AVAX token has risen by more than 12% in a week. The price went up from $14.89 to $16.76. At the same time, on Tuesday, March 14, it was higher and amounted to $17.96. However, on Wednesday, March 15, there was a sharp collapse of quotations by almost 8.5%.
The main reason for the positive dynamics in Avalanche is the same as in bitcoin and ether – the collapse of American banks. However, the growth of this altcoin turned out to be less, as now investors are trying to find a safe haven for money. And AVAX is a very volatile asset.
The leaders of Ava Labs, the main developer of the Avalanche blockchain, are also reacting to the situation in the United States. So they turned their eyes to the east. In a short time, two new specialists were hired to do business in Japan and South Korea. The Land of the Rising Sun division will be led by Roi Hirata, who has experience in several start-ups. Business in South Korea will be built
under the direction of former employee of the Korea Development Bank Justin Kim.
This step may be due to the fact that in America at the moment there are no banking structures friendly to crypto enthusiasts. In Asia, on the contrary, a favorable environment is emerging.
From the position of technical analysis, in order to continue the ascent of AVAX, it is necessary to overcome the resistance level in the region of $18 – the maximum of the past week. The support level is around $14.3, which was successfully pushed off on March 10th.
It can be stated that massive problems with banks in the United States caused a cryptocurrency boom. At the same time, bitcoin showed the greatest growth.
This material and the information in it does not constitute individual or other investment advice. The opinion of the editors may not coincide with the opinions of the author, analytical portals and experts.
I am an experienced journalist, writer, and editor with a passion for finance and business news. I have been working in the journalism field for over 6 years, covering a variety of topics from finance to technology. As an author at World Stock Market, I specialize in finance business-related topics.