Over the weekend, Bitcoin and Ethereum experienced a slight rise in value, with Bitcoin surpassing $20,000 and Ethereum reaching the $1,400 mark. A weak US dollar may be responsible for this modest increase in crypto value, as February’s labor statistics showed slower wage growth. Ordinal, a Layer 2 solution, is also expanding the use cases of the Bitcoin network beyond just BTC transactions. Its rising popularity and potential impact on the Bitcoin network could change the game for BTC miners. Weaker US dollar could lead to increased adoption of Bitcoin, potentially reducing the load on the network, resulting in greater efficiency and profitability for BTC miners. The recent surge in the cryptocurrency market was due to the weaker US dollar.
Silicon Valley Bank (SVB), a major financial institution that caters to venture capital firms, has been hit hard by a liquidity crisis. The bank’s troubles have raised fears of contagion in financial markets and sparked concerns over the potential impact on the broader economy. The news of SVB’s liquidity crisis has sent shockwaves through the cryptocurrency market, with prices of major digital assets falling. The crypto market, which has been on a bull run for the past month, has been hit hard by the news, with Bitcoin and Ethereum losing significant value. The focus will be on how SVB and other financial institutions respond to the crisis and whether the fallout can be contained.
The Securities and Exchange Commission (SEC) has once again rejected VanEck’s proposal to create a spot Bitcoin trust that would allow investors to trade Bitcoin on regulated exchanges. This decision marks nearly 20 similar rejections over the past six years, as the SEC has hesitated to approve any such applications. The SEC cited concerns over market manipulation, liquidity, and valuation in denying VanEck’s proposal.
The live Bitcoin price is $21,515, with a 24-hour trading volume of $22.8 billion. Over the past 24 hours, Bitcoin has gained 5.00%. The first hurdle for Bitcoin is at the $21,700 resistance level. If Bitcoin breaks above this level, it could trigger buying pressure and potentially push its price towards the $23,175 level. If the bullish momentum continues, there is a chance that Bitcoin could even reach the $25,150 mark.
Overall, the current state of the cryptocurrency market is unpredictable due to the ongoing regulatory concerns and recent market volatility. However, experts believe that the adoption of Layer 2 solutions like Ordinal could help BTC regain its strength and increase in price. Furthermore, investors will be keeping a close eye on the response of financial institutions to the liquidity crisis faced by Silicon Valley Bank, as well as the regulatory challenges that cryptocurrencies continue to face in the US.
