Bitcoin Moves Towards $26,000 Amid Market Turmoil

Key Points:

• Bitcoin (BTC) continues moving toward the $26,000 mark amid market uncertainty.
• Despite the collapse of central crypto-focused banks, they were beating major stock and commodity indices.
• A slower rate hike from the US Federal Reserve is helping bitcoin.
• The upside momentum is also bolstered as the market gets more active with Binance’s upcoming launchpad program and the much-anticipated Arbitrum airdrop.

Despite the collapse of 3 central banks with crypto-friendly policies, Bitcoin (BTC) is still seeing a 27% spike in the past seven days and is approaching $26,000.

In the past few days, the crypto market, especially the stablecoin market, has witnessed a lot of volatility as significant banks with crypto-friendly policies have been closed by US authorities due to a liquidity crisis. A series of stablecoins had to find new reserves because of this sudden closure. The hardest hit is Circle, the second largest stablecoin issuer in the USDC market, with $3.3 billion in reserves on the collapsed bank SVB.

On the other hand, some analysts say that stress on the financial sector could slow the pace of Fed rate hikes, which could help risk assets, such as stocks and bitcoin. That comes even after Fed Chairman Jerome Powell said days before the bank collapse that interest rates are likely to be higher than policymakers anticipated.

As reported by CNBC, Bitcoin is up 50% this year. In contrast, the tech-heavy Nasdaq, whose bitcoin has been closely correlated in the past, is up 12% this year. The S&P 500 rose 2.5%.

Among the significant cryptocurrencies, ether is up 42% this year, while Solana is up more than 100%.

Gold, seen as the asset investors flock to during market turmoil, is up just over 3% this year.

According to the price chart, $26,500 – $27,000 is an essential weekly resistance. If the weekly candle is established above this level, BTC will exit the downtrend in a significant downtrend and possibly return to the uptrend cycle.

Besides, the upward momentum may come from the excitement of the market again when a series of expected events are about to take place.

Yesterday, Ethereum developers announced that Ethereum’s Shanghai Upgrade would officially launch on April 12. This is one of Ethereum’s most essential upgrades marking the possible withdrawal of staked ETH.

In addition, Binance Launchpad is set to launch its 30th project, Space ID (ID), on March 22, 2023. This project will follow the standard Launchpad subscription format, with users’ BNB balances recorded for 5 days commencing March 17, 2023, until March 22, 2023.

The crypto community is also eagerly anticipating Arbitrum’s ARB token airdrop scheduled for March 23. The token is designed to provide DAO governance for the Arbitrum network. The event became widely popular, making it the sixth trending Twitter topic in the US, with over 10,000 tweets.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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