• Tue. May 28th, 2024

Crypto Market Continues To Surge While Banking Sector Faces Turmoil

Summer White

BySummer White

Mar 18, 2023

Crypto Market on the Rise

At the trading session on Tuesday Bitcoin started to move up closer to a crucial price level of $25,000. Along with Bitcoin, almost every single crypto coin in the industry also saw its value increase substantially.

The argument is that the turmoil being faced by the conventional banking sector is accelerating the crypto market surge. The argument seems right as three of the world’s largest banks in the USA are going to be no more.

For instance, banks like Silicon Valley Bank, Silvergate Bank, and Signature Bank are going to crash at any moment. Meanwhile, Silicon Valley Bank’s affairs have also been taken into control by the financial regulator in New York.

Banking Sector in Turmoil

The general sentiment amongst banking customers is that they have been growing a sense of ‘distrust’ towards banking institutions.

They no longer have as much confidence in the banking system and what it has to offer as they were in the past. The recent events have made things even worse among bank customers.

For them, these events have proven to be very bitter and things have not been as promising for them as they had imagined them to be.

Although, the banking sector is considered to be safe for now, however, the “distrust” has incited a sense of stress among bank customers.

This stress can be proven by the fact that withdrawal requests from customers have piled up before JPMorgan Bank and Citibank.

Meanwhile, news of the possible collapse of First Republic Bank has surfaced. It has been reported that the value of First Republic Bank’s stocks has decreased alarmingly by more than 60%.

Despite this situation, the crypto industry responded positively which led the lead cryptocurrencies’ economies high in the following manner.

Bitcoin Value Hike

Bitcoin kicked started the preceding week by quickly rebounding and took its value above $22,000. Bitcoin gains were extended on the next day i.e. Tuesday when the price further soared and ended the trading session at $24,851.62.

On the other hand, stock markets comprising of stocks belonging to banks, remained flat for the entire trading day. The traders are not paying much attention to the bank in stocks as they are currently despising them.

It was noted that the investors make a shift from buying bank stocks to investing funds in cryptocurrencies. Due to recent developments, cryptocurrencies have emerged as more of a positive choice for investors.

At Present, Bitcoin is moving closer to reaching and then bypassing the crucial price threshold of $25,000. As of now, Bitcoin’s market value is about $24,535.24.

Furthermore, Bitcoin is evidently in the safe zone as the bulls are targeting crossing the $25,000 barrier.

Ethereum Price Gains

Like Bitcoin, Ethereum also seems to be moving toward crossing the price benchmark of $1,700. With extended gains from Monday’s trading, Ethereum fetched further gains on Tuesday and went as high as $1,699.91.

On Monday, Ethereum price had dropped to $1,576.06 but the decline was made good at the initial hours of trading on Tuesday.

The hurdle in the progression of Ethereum on Monday was the price ceiling of $1,675. However, this price ceiling was easily overtaken by Ethereum on Tuesday.

As of now, Ethereum is trading below $1,675 i.e. $1,653 and it seems the coin has lost momentum for the time being.

Perhaps, Ethereum’s failure in moving ahead of the mark of 62.00 in its 14-day relative strength index (RSI) was the reason behind losing momentum. Presently, Ethereum’s movement in RSI is just over the 60.00 mark.

For it to fetch further gains, Ethereum would need to make sure that its tracking in the RSI goes above the 62.00 mark.

If Ethereum succeeds in doing so, then the next possible price tag for Ethereum could be near or above $1,700.

Market experts are of the view that the banking sector disaster has just begun which would definitely work in favor of the global crypto economy.

Summer White

Summer White

Summer White, an esteemed writer for Big Trends Signals, combines her online trading expertise and articulate writing to deliver exhaustive guides and fair reviews, assisting traders in digital markets.

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