Major cryptocurrency values fell on Friday amid concerns about the viability of crypto bank Silvergate, which has experienced a rapid departure of significant clients in recent days.Bitcoin (BTC) was down about 4.5% on the day as of the last trade, trading in the mid-$22,000 range.The cryptocurrency ether (ETH), which runs the Ethereum network, was last trading in the upper $1,500 range and was down about 4.7% on the day.The total market value of cryptocurrencies was last estimated at $986 billion, down little more than 4.4% or roughly $43 billion on the day.A rise in trader liquidations has occurred as a result of the price decline.The 2nd of March saw the closing of long positions in the cryptocurrency futures market worth more than $210 million, according to the data analytics website coinglass.com for crypto derivatives.
According to some observers, the transfer of part of Mt Gox’s bitcoin to the victims of the exchange’s long-ago breach may have increased the pressure to sell.Nonetheless, Bitcoin is currently more than 11% lower than its recent highs above $25,000, while Ethereum is more or less 10% lower than its most recent highs in the mid-$1,700 range.
Due to worries about further interest rate tightening by the Fed in the aftermath of recent positive data, cryptocurrency appears to have been playing catch-up with recent declines in US equities.Fair enough, US stock prices are climbing this Friday, which is aiding in giving cryptocurrencies a floor, but the major indices are still substantially below recent highs.Macro analysts claimed that because the Fed hasn’t shown any signs that they want to raise interest rates above 5.5%, the level that the market is currently pricing in, traders have been more hopeful on Friday.The likelihood of a US recession later this year is decreased by solid statistics, especially the most recent monthly ISM services report.Equities should do well if the American stock rise can endure.And given the recent bullish technical developments for the S&P 500, it might even continue.
The index recently found significant support at its 200-Day Simple Moving Average (SMA) and a significant long-term downtrend, indicating that the bull market’s upward trajectory since last year’s low may still have some further to run.
In the upcoming days and weeks, Ether may benefit from the upward trend in stock prices.Future Ethereum network updates may also have this effect.The Shapella hard fork will occur on the final significant public Ethereum testnet later this month, paving the way for an upgrade to the mainnet the following month.Staked ETH is the major component of the next update.While some believe this may temporarily increase sale pressure as ETH investors profit from their withdrawn ETH and ETH earnings, the majority believe it will be a long-term motivator.
Flexible withdrawal policies should encourage more ETH investors to stake their coins, which should lead to a higher chunk of the supply being locked up and potentially increasing scarcity and pricing.
In the upcoming weeks, these factors might be able to support Ether, but for the time being, there is still a chance of additional sell pressure.This is due to Ether’s most recent dip, which saw it break south of an uptrend that had been in effect since the beginning of the year.The likelihood of a possible test of the $1,460 area lows from February remains skewed towards the near term.In the upcoming months, ETH might perform nicely.
Nonetheless, investors seeking immediate profits may wish to think about alternative high-potential tokens, such those offered in pre-sale by promising upcoming crypto ventures.On this list of the top 15 cryptocurrencies for 2023, as determined by the Cryptonews Industry Talk team, we’ve assessed some of the main contenders.Every week, new altcoins and ICO projects are added to the list..
