Crypto Reversal: Contrary to global sentiment, the crypto market is jumping big
The events of the past two weeks have been of particular interest to the crypto industry. First, the Center brought cryptocurrency under the Prevention of Money Laundering Act (PMLA), 2002. Later, three crypto-friendly banks in the US collapsed one after the other. These were Silvergate Bank, Silicon Valley Bank and Signature Bank. These events led to a fall in crypto prices. As of Friday, however, the crypto market was looking bright.
The total market cap for crypto jumped from $922 billion on March 10 to $1.1 trillion on Friday, according to CoinMarketCap. The price of Bitcoin was up 33 percent in the past week and traded at $26,421 on Friday. Ethereum was up 23 percent over the same period, trading at $1,728. Several other coins, such as Polygon, Solana, Polkadot, Avalanche and Tron, were up over 20 percent.
“Bitcoin remains on solid footing, trading as high as $26,000 in these stressful times. It was Bitcoin’s Layer-2 scaling solution Stacks (STX) that witnessed a whopping 50 percent gain during the week,” said Parth Chaturvedi, Crypto Ecosystem listed on the CoinSwitch crypto exchange.
He added that the fall of crypto-friendly banks could push crypto businesses to other countries such as Switzerland and Hong Kong.
“Silvergate, SVB and Signature have been strangled, with access to US banking routes becoming more difficult for crypto players. This will have a long-term liquidity impact and may also lead to the offshoring of businesses to more crypto-friendly jurisdictions such as Switzerland, Hong Kong, UK and Dubai,” he said.
As the week progressed, worrying reports emerged from Credit Suisse Bank. Its Saudi Arabia-based investors announced they would no longer support the bank. The central bank of Switzerland later announced that it would provide $54 million to the bank for support.
Some experts believe that despite the bull run, investors need to be cautious.
“As we head into the weekend, it could simply be a bull trap. It is prudent for investors to let the market cool down before making any investments,” said Alankar Saxena, CTO and co-founder of crypto firm Mudrex.
“While Credit Suisse received a $54 billion lifeline, the sector continues to experience infrastructure breakdowns. Overall, rate releases this week had a net positive impact on crypto markets, with upcoming rate hikes next week a key event to watch,” said Anurag Dixit, Founder by crypto asset management firm Kunji.
