Paxful Founder Says Bitcoin Pump To $26,000 Is Weak
Despite the US banking crisis and the latest inflation data, Bitcoin rallied this week, hitting a nine-month high above $26,000. However, Paxful founder Ray Youssef remains skeptical about the uptrend. In a tweet on March 15, he said that the recent BTC stage is “weak”.
Bitcoin Rises Amid Bank Crash
Much of Bitcoin’s price woes last week stemmed from uncertainty surrounding the bankruptcy of some of the crypto industry’s biggest banking partners.
Silvergate filed for voluntary liquidation while Signature Bank was closed. Silicon Valley Bank (SVB) experienced a bank run and was placed under receivership by California regulators.
Bank stocks fell in response to this crisis, but crypto assets are relatively steady. Since Friday, BTC’s price has risen roughly 29%, rising above $26,000 on March 14.
While Bitcoin is relatively higher, Youssef believes the upside momentum is weak since the pump has low trading volumes. Trading volume is a measure of participation. Traders use this indicator to measure participation and interest.
Based on this observation, he advises traders to take their profits and wait for a cooldown before loading up.
This btc pump has low volume, even the ordinal pump had more volume. I wanted to take care and take some profit. The Empire will continue to fight back hard. Buy back later and always keep a 2 year time frame.
— Ray Youssef (@raypaxful) March 15, 2023
Ditch inflation and Binance’s crypto-buying spree
The price increase coincides with news that inflation in the US is gradually falling, in line with economists’ expectations.
The Bureau of Labor Statistics’ Consumer Price Index (CPI) reading on Tuesday showed that year-over-year inflation had cooled to 6% in February.
Signs of falling inflation may signal that the Federal Reserve (Fed) will stop raising interest rates in the coming months.
The central bank has raised interest rates over the past year to combat rising inflation after months of quantitative easing in 2020.
Earlier this week, Binance, the world’s largest crypto exchange by customer base, said it would convert its $1 billion industry recovery fund to, among other coins, Bitcoin.
Changpeng Zhao “CZ”, CEO of Binance, so this decision follows the banking crisis in the US and “changes in stablecoins”.
“Given the changes in stablecoins and banks, Binance will convert the remaining $1 billion Industry Recovery Initiative funds from BUSD to native crypto, including BTC, BNB, and ETH. Some fund movements will occur on-chain. Transparency.”
After CZ’s statement, data showed that Bitcoin was deposited to Binance.
Analyst James V. Straten so the decision to buy coins including BTC and Ethereum is why there has been an increase in volatility which is further increased by macro factors.
Bitcoin price is currently stable but is below the $25,000 level.
Feature image from Canva, chart from TradingView
