Crypto Market Witnesses Surge in Bitcoin, Ethereum, and Dogecoin as Market Instability Persists; Analyst Predicts Cryptocurrencies to Reach an Apex of $25K Due to FOMO Among Investors.
Major cryptocurrencies saw gains on Monday evening after U.S. regulators announced their support for deposits at Silicon Valley Bank and Signature Bank. Bitcoin surged above $24,000 for the first time in over two weeks and hit $24,378. Ethereum rose about 3.6% to trade above $1,600, while Dogecoin rose 1.43% to $0.072. Marathon Digital Holding spiked 25% following its announcement that it still has access to $142m at Signature Bank. Crypto-related stocks were on the rise, while US stocks finished lower. Investors will be watching the Consumer Price Index for February, due to be released on Tuesday, to decide where to place their bets.
Meanwhile, Binance announced its intention to convert $1bn worth of Binance USD into digital tokens, including Bitcoin, Ether, and BNB Coin. Meta Platforms paused its digital collectibles initiative to focus on new ways to support creators and businesses, one year after announcing plans to allow sharing of digital collectibles on its Instagram platform.
According to analysts, Bitcoin’s rally was prompted by concerns over financial stability caused by crashing Treasury yields and the pressure on some banks with crypto ties. Michael van de Poppe, CEO of Eight Trading, predicts a massive move of Bitcoin toward the next resistance zone at $21,600, recommending a buy-the-dip strategy. Data analytics platform, Santiment, suggested that FUD (fear, uncertainty, and doubt) might have been overblown and recommended watching out for any significant spikes in FOMO and discussions about a potential $25,000 Bitcoin price. Pseudonymous analyst Kaleo was bullish on the last weekly close, noting the clean hammer wicking right off the heavy-term support, and believes $40,000 is still a major magnet for Bitcoin.
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