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

The mood in the cryptocurrency market is changing at lightning speed. A week ago, it seemed that cryptowinter had returned. However, the trend has changed again - the cryptocurrency is growing against the backdrop of a series of collapses in the banking sector.

Bitcoin

During the week of March 10-17, Bitcoin added by more than 28%, rising from $20 to $220. For the whole week, only one trading session for BTC was in the red - on Wednesday, March 26, the historically first cryptocurrency in the world fell by 038%. At the same time, a nine-month high of $15 was recorded the day before.

: tradeview.com

What caused such rapid growth? By and large, the only catalyst was the problems faced by US banks, namely the liquidation of three of them: Silvergate Bank, Silicon Valley Bank and Signature Bank. The American authorities were forced to urgently take action so as not to undermine investor confidence. But, at least in the short term, the banking sector was clearly causing concern among financiers. Bitcoin has become a safe haven for saving and multiplying money.

It is worth noting that not everyone was enthusiastic about the growth of BTC. According to the investment company ByteTree Asset Management, it turned out that the number of bitcoins held by various bitcoin funds was the smallest in almost a year and a half. It seems that big business does not believe in the longevity of BTC. For its part, Morgan Stanley, in this difficult time for the economy, says that bitcoin is a speculative asset.

But investors with small capital and individual large players, on the contrary, are increasing their positions. Account holders between 10 and 10 BTC have bought $000 million worth of cryptocurrencies, according to data from analytics firm Santiment.

There have been several opinions on whether or not to invest in the historically first cryptocurrency. Economist Peter Schiff and Mad MoneyGram host Jim Cramer are calling for a bitcoin selloff. But the author of the book "Rich Dad Poor Dad" Robert Kiyosaki (Robert Kiyosaki), on the contrary, calls to buy BTC and wait for the crisis.

In terms of technical analysis, Bitcoin is now in a bullish trend. The level around $25, which was resistance, has now become support. And the aforementioned March 200 high of $2023 is the current resistance level.

: tradeview.com

The index of fear and greed for the week rose to the neutral zone. The value is currently 51.

Ethereum

Ethereum over the past week showed a more modest increase compared to bitcoin - about 21%. The dynamics of the second largest cryptocurrency by capitalization is similar to BTC: six days of growth and a fall of 2,81% on Wednesday, March 15. The biggest increase (over 7%) was demonstrated on Sunday, March 12, when the closure of Signature Bank was announced.

: tradeview.com

Overall, Ethereum’s rise was fueled by the same bank crash that helped soar BTC. Otherwise, as planned by Vitalik Buterin, everything is as usual - preparations for the Shanghai hard fork continue. During the week, the update was tested on the Goerli network.

Also on March 16, it was finally announced exactly when Shanghai would be implemented. The date chosen was Sunday, April 12th.

Some excitement for investors in Ethereum is added by current applications for recognition as a security. The head of the SEC, Gary Gensler, believes that all cryptocurrencies using the Proof-of-Stake (PoS) consensus algorithm should be regulated as securities. Ethereum has recently used PoS.

The technical picture is now in favor of bulls in all cryptocurrencies. Ethereum is no exception. The next important mark to pass is the resistance level around $1790 and the support level around $1615.

: tradeview.com

Avalanche

The price of the Avalanche AVAX token has increased by more than 12% in a week. The price went up from $14,89 to $16,76. At the same time, on Tuesday, March 14, it was higher and amounted to $17,96. However, on Wednesday, March 15, there was a sharp collapse of quotations by almost 8,5%.

: tradeview.com

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

The leaders of Ava Labs, the main developer of the Avalanche blockchain, are also reacting to the situation in the United States. So they turned their eyes to the east. In a short time, two new specialists were hired to do business in Japan and South Korea. The Land of the Rising Sun division will be led by Roy Hirata, who has experience in several startups. Business in South Korea will be built under the leadership of former employee of the Korean Development Bank Justin Kim (Justin Kim).

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

From the standpoint of technical analysis, in order to continue the rise of AVAX, it is necessary to overcome the resistance level in the region of $18 - the maximum for the last week. The support level is around $14,3 which was shifted to March 10th.

: tradeview.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 contained therein do not constitute individual or other investment advice. The opinion of the editors may not coincide with the opinion of the author, analytical portals and experts.