The past week has been anything but boring in the crypto market. Initially, Bitcoin fell further below $20,000 amid macro fears in the financial markets. The collapse of both Silvergate and Silicon Valley Bank (SVB) and the hawkish Comments from Federal Reserve Chairman Jerome Powell about higher rate hikes did not bode well for Bitcoin (BTC).
However, the price of bitcoin started a significant upward movement from Sunday evening and even rose above $ 26,000 after the publication of the inflation figures.
The total crypto market cap stands at $1.12 trillion and the Fear & Greed index comes in at 51 (neutral).
Banks fall like dominoes
The drama all started last Thursday when you could read in the crypto news that crypto bank Silvergate had announced that it would halt all operations and proceed to liquidation. The baton was then passed on to SVB, which was struggling with a bank run after customers heard that the bank was short of cash. For this reason, the bank was closed by the American regulators. The US government promised on Sunday that customers will get all their money back thanks to the US version of the Deposit Guarantee Scheme.
On Sunday evening it happened again: Signature Bank was closed by the government to prevent a further collapse. The fear in the world of finance is still very much alive, and there are fears of even more banks going under.
USDC hit by fall SVB
Circle, the issuer of USDC Coin (USDC) was found to have significant exposure to SVB. In total, $ 3.3 billion in collateral for the stablecoin would be placed with SVB. In total, the reserves are equivalent to about $40 billion.
USDC lost the peg against the US dollar and fell to an all-time low of $0.87. Partly due to the aforementioned announcement by the Federal Reserve, the stablecoin managed to find its link with the dollar again.
Bitcoin rises after inflation figures
The Consumer Price Index (CPI) of the United States was also published on Tuesday. Annual inflation came out at 6.0%, which was entirely in line with expectations. Last month this inflation was still at 6.4%. The bitcoin price reacted positively and rose above $26,000. After a brief correction over the next few days, BTC’s price dropped uptrend just keep going, breaking the $26,000 mark again.
#BTC CME chart closed daily price above 25k$, this didn’t occur on other exchanges.
Two important things now are the gaps below and above the current price, truth is gaps get filled 75 – 90% of the time.
— Mikybull 🐂Crypto 🔬 (@MikybullCrypto) March 15, 2023
Bitcoin leads the crypto market
The king of cryptocurrencies, bitcoin, has outperformed the top fifteen cryptocurrencies by market capitalization over the past week. Since Sunday evening, bitcoin started an uptick and today reached its high of around $26,900. The last time BTC was above $26,000 was nine months ago, before crypto lending platform Celsius went under.
Most altcoins failed to perform as well as bitcoin over the past seven days. However, Ethereum (ETH), the number two in terms of market capitalization, also shot into the air. ETH managed to peak at $1,780 and then started a correction. At the time of writing, the ETH price stands at $1,711.
BNB rises after this news
Binance coin (BNB) follows a similar course to BTC and ETH. at this point, it’s still in the green by more than double digits over the past week.
News came out this week that Binance, the largest crypto exchange in the world, has converted a total of $980 million into BTC, ETH, and BNB. Specifically, it has converted its BUSD from the Industry Recovery Initiative to BTC, ETH, and BNB due to the changes in sgtablecoins and banks. This news is of course positive for the prices of BTC, ETH and BNB.
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