Cryptocurrency is growing amid the collapse of American banks: how does bitcoin behave

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6 min.

Opinion

Sentiment on the cryptocurrency marketchange at lightning speed. A week ago, it seemed like crypto winter had arrived again. However, the trend has changed again - cryptocurrency is growing against the backdrop of a series of collapses in the banking sector.

Bitcoin

During the week from March 10 to March 17, Bitcoin increasedmore than 28%, rising from $20 220 to $26 038. Over the entire week, only one trading session for BTC was negative – on Wednesday, March 15, the historically first cryptocurrency in the world fell by 1.5%. At the same time, the day before, the maximum for nine months was shown – $26 533.

Source: tradingview.com

What caused such rapid growth?By and large, the only catalyst was the problems faced by US banks, 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 investor confidence. 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 increase money.

It is worth noting that not everyone accepted it withenthusiastic about the growth of BTC. According to the investment company ByteTree Asset Management, the number of bitcoins held by various bitcoin funds was the lowest in almost a year and a half. It seems that big capital does not believe in the longevity of BTC. In turn, Morgan Stanley, in these difficult economic times, states that Bitcoin is a speculative asset.

But investors with small capital andSome major players, on the contrary, are increasing their positions. Account holders with sizes ranging from 10 to 10,000 BTC bought more than $821 million worth of cryptocurrencies, according to data from the analytical company Santiment.

Several opinions have been expressed regardingwhether it is worth investing 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, on the contrary, calls for buying BTC and is waiting for a crisis.

From the perspective of technical analysis of BitcoinNow there is 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.

Source: tradingview.com

The fear and greed index rose to the neutral zone over the week. At the moment its meaning
is 51.

Ethereum

Over the past week, broadcast showed moremodest growth compared to Bitcoin – about 21%. The dynamics of the second largest cryptocurrency by capitalization are similar to BTC: six days of growth and a fall of 2.81% on Wednesday, March 15. The greatest growth (over 7%) was demonstrated on Sunday, March 12, when the closure of Signature Bank was announced.

Source: tradingview.com

In general, the growth of Ethereum was facilitated by the samebanking collapse, which helped BTC take off. Otherwise, everything is business as usual for Vitalik Buterin’s brainchild – preparations for the Shanghai hard fork continue. This week an update was tested on the Goerli network.

Also on March 16, it was finally announced when exactly Shanghai would be implemented. Date
selected Sunday, April 12. 

Some tension for Ethereum investorsadds continuing statements of recognition as a security. SEC Commissioner Gary Gensler believes that all cryptocurrencies using the Proof-of-Stake (PoS) consensus algorithm should be regulated like securities. Ethereum has recently adopted PoS.

The technical picture is now in everyonecryptocurrencies are shaping up in favor of the bulls. Ethereum is no exception. The next important mark to pass will be the resistance level around $1 790. The support level is around $1 615.

Source: tradingview.com

Avalanche

The price of Avalanche's AVAX token has increased byweek more than 12%. The price rose from $14.89 to $16.76. Moreover, on Tuesday, March 14, it was higher and amounted to $17.96. However, on Wednesday, March 15, there was a sharp collapse in quotes by almost 8.5%.

Source: tradingview.com

The main reason for the positive dynamics inAvalanche is the same as in Bitcoin and Ethereum - the collapse of American banks. However, the growth of this altcoin turned out to be less, as investors are now trying to find a safe haven for their money. And AVAX is a very volatile asset.

Leaders are also reacting to the situation in the United StatesAva Labs is the main developer of the Avalanche blockchain. So, they turned their gaze to the east. In a short period of time, two new specialists were hired to conduct business in Japan and South Korea. The division in the Land of the Rising Sun will be headed by Roi Hirata, who has experience working in several startups. Business in South Korea will be built 
under the leadership of former Korean Development Bank employee Justin Kim.

This step may be due to the fact that in America there are currently no banking structures friendly to crypto enthusiasts. In Asia, on the contrary, a favorable environment is developing.

From a technical analysis perspective to continueAVAX's ascent needs to overcome the resistance level around $18 - the high of the past week. The support level is around $14.3, from which we managed to successfully push off on March 10.

Source: tradingview.com

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.