In today’s bitcoin and crypto news, discover that two of the most popular coins have more than recovered from last week’s crypto banking meltdown. Meanwhile, Bitcoin and other cryptocurrencies as a whole fell back below the $30,00 psychological barrier as persistently rising UK inflation stoked concerns of higher interest rates lasting for longer. On the other hand, Ripple’s XRP started a new upswing against the US dollar after finding support above the $0.4880 zone. The price steadily went up after breaking through the $0.500 and $0.510 levels of resistance, just like Bitcoin. Finally, despite Ethereum’s post-Shapella surge, the cryptocurrency market is down today, with the entire market value of all cryptocurrencies dropping over 4% in 24 hours.
Massive Price Increases in Bitcoin and Ethereum Follow Bank Intervention
Original Source: This Week in Coins: Bitcoin, Ethereum Post Mega Rallies After Banking Intervention
After last week’s crypto banking meltdown, the top two coins recovered.
After three weeks of losses, investors of the two largest cryptocurrencies by market cap saw prices rise this week.
CoinMarketCap statistics shows that Bitcoin (BTC) rose 36% in the past week to $27,515.
Bitcoin fell 10% last week after Signature Bank and Silicon Valley Bank (SVB) collapsed.
Ethereum (ETH), the industry’s No. 2 coin, is back where it was before the fall. ETH is trading at $1,832, up 27% in seven days.
After the Federal Reserve, U.S. Treasury, and FDIC stated they would backup all Signature and SVB deposits late Sunday night, the whole crypto market jumped. Biden repeated that commitment.
However, crypto lost its two most crypto-friendly banks, and now conflicting stories are circulating about whether the FDIC is instructing prospective owners of Signature Bank that it must sell its crypto business. Former Massachusetts congressman Barney Frank said the Feds shut down Signature to send a “anti-crypto message,” and a Reuters piece late in the week appeared to validate Frank’s assertions. The FDIC has refuted the Reuters story’s claims.
In the UK, Chancellor of the Exchequer Jeremy Hunt revealed that the HM Treasury—the UK Finance Ministry—had engineered a bailout arrangement in which HSBC bought the British portion of SVB for £1 to make whole British businesses with exposure to the bank.
After fears that the banking crisis may be spreading to Europe’s TradFi institutions, investors bought risky assets like crypto and tech stocks this week: On Wednesday, Credit Suisse announced a $54 billion Swiss National Bank loan to boost liquidity.
Filecoin (FIL), Polygon (MATIC), Solana (SOL), and BNB were among the biggest winners this week, with Filecoin rising 33% to $6.39, Polygon 22% to $1.24, Solana 28% to $22.30, and BNB 25% to $344.76.
After anxiety regarding Circle’s connection to troubled banks, USDC, its dollar-pegged stablecoin, plummeted to 87 cents last weekend. It steadied this week after the bailout news.
Bitcoin’s Value Falls Below $30,000 Once Again
Original Source: Back Crypto News Today: Bitcoin Drops Below $30,000 Again; Here’s why
Bitcoin fell below $30,000 amid a wider cryptocurrency selloff as stubbornly high UK inflation raised concerns of higher interest rates for longer.
The largest digital cryptocurrency declined 4.5% before recovering to trade at $29,276 at 3:05 p.m. in New York on Wednesday. Bitcoin has fluctuated on either side of the benchmark number since surpassing it last week for the first time since June.
Ether fell 5.6% while lesser coins like Solana and Avalanche fell further. Marathon Digital, MicroStrategy, and Coinbase Global also fell.
The bulk of the decrease occurred after UK consumer-price data on Wednesday showed inflation remained above 10% in March, adding to recent hints that central banks will have to keep raising borrowing costs. That’s giving traders pause after Bitcoin rose over 80% this year on rate decrease anticipation.
According to Coinglass statistics, the unexpected selloff caused $175 million in crypto market long bets to be liquidated.
“This seems to be a classic liquidation and structural market reaction,” said K33 Research senior analyst Vetle Lunde.
The idea that a regional bank crisis will cause the Federal Reserve to stop tightening has been disproven by US economic statistics this month. A major US inflation indicator showed indications of softening in March, but probably not enough to dissuade Fed officials from shifting course. Pay gains for US workers are outpacing inflation.
The latest interest-rate concerns are unlikely to derail this year’s crypto boom, according to Copper’s head of research, Fadi Aboualfa. The positive financing rate, when long investors pay short traders a tiny charge, indicated bullish sentiment, he said.
In an email, he said, “From what we’ve noticed speaking to different hedge funds, many are continuously allocating to Bitcoin after being on the sidelines.” “We’re not seeing any fundamental shift.”
Bulls on Ripple Hope for $0.60 or More
Original Source: XRP Price Prediction: Ripple Bulls Aim For $0.60 or Higher
Ripple Price Eyes Another Increase
Ripple’s XRP rose against the US Dollar after establishing a base above $0.4880. Like Bitcoin, it rose above the $0.500 and $0.510 barrier levels.
The price rose above $0.525, but the bears appear to be guarding $0.535. The price is consolidating around $0.5382, the current high. It traded below the 23.6% Fib retracement of the upward run from the $0.5072 swing low to $0.5382 high.
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XRP is above $0.510 and the 4-hour 100 simple moving average. On the XRP/USD 4-hour chart, a big bullish trend line is forming with support near $0.5100.
Initial resistance is about $0.5320. The first significant resistance is at $0.535. If the price breaks above $0.535, it may reach $0.5475. More advances could push the price toward $0.600.
Dips in XRP?
Ripple may continue to fall if it fails to break the $0.535 resistance zone. The $0.522 area provides first help.
The next key support is near $0.519, the 61.8% Fib retracement of the upward run from the $0.5072 swing low to the $0.5382 high. Near $0.510 or the trend line is the key support. If XRP breaks and closes below $0.510, its price may fall further. In this circumstance, the price could test $0.488 support.
Why is Crypto Down Today
Original Source: Why is the crypto market down today?
Some observers thought Bitcoin BTC $28,354 was on the verge of confirming a new bull market, but regulatory uncertainty and poor macroeconomic conditions caused the cryptocurrency market to fall.
Crypto market down 4%, Bitcoin under $30,000.
After failing to hold $30,000, bitcoin price dropped to $29,158 on April 19. Some traders are also concerned that a subsequent fall could retest the bear market lows.
Ether’s concerns are similar.
ETH $1,865, which exceeded the $2,100 threshold post-Shapella upgrade and achieved an 11-month high, dropped to a 7-day low of $1,972 on April 19 despite ETH staking deposits exceeding withdrawals the day before.
Regulatory crackdown worries in the US
Crypto traders may have been alarmed by SEC Chair Gary Genseler’s oversight appearance before the US House Financial Services Committee on April 18.
Gensler refused to explicitly say if Ethereum was a commodity or security during the hearing.
Bittrex, a cryptocurrency exchange, was sued by the SEC on April 17. Bittrex’s unlicensed national securities exchange, broker, and clearing agency is the lawsuit’s claim.
A hawkish Fed and a weaker economy weigh on risky assets.
Despite financial crisis fears and prospects of a dovish U-turn, Federal Reserve head Jerome Powell looks dedicated to controlling inflation through more hikes.
Powell and the Fed reiterate their target of 2% inflation. Powell said in a press conference on March 28.
The market expects interest rates to rise at the next Federal Open Markets Committee (FOMC) meeting on May 3, 2023.
Since the industry is still heavily correlated with the Dow and S&P 500, this will be an important date for bitcoin investors.
The Fed is also facing difficulties as major banks still forecast a significant recession in 2023 that will likely lower risk-on asset values, including cryptocurrency.
According to U.S. Bank study, investor sentiment towards the economy is low and declining.
Summary of today’s bitcoin and cryptocurrency news
In summary, Circle’s dollar-pegged stablecoin, USDC, dropped to 87 cents last weekend amid concerns about the company’s ties to troubled financial institutions. In response to the bailout news, it leveled off this week.
Meanwhile, according to statistics from Coinglass, the abrupt selloff caused the liquidation of long bets across cryptocurrency markets totaling $175 million.
On the other hand, Ripple’s price may continue to fall if it is unable to break below the $0.535 barrier level. The $0.522 area provides the first support for a decline.
Finally, analysis from the U.S. Bank shows that investor confidence in the economy is low and declining.