The Significance of FRC Collapse
The price of Ethereum (ETH) fell on Monday as investors waited for the Federal Reserve’s upcoming interest rate decision while also reacting to the collapse of the second-biggest bank in the US, First Republic Bank. The collapse marks 2023 as the worst year for banks since the financial crisis of 2008. The fall in traditional banks is seen as a positive for cryptocurrencies as investors may turn to Bitcoin and altcoins as an alternative, with cryptocurrencies having a positive correlation. Meanwhile, the Fed’s decision is likely to take into account the current crisis in the banking sector, with some predicting the central bank may enact an interest rate pause, turning sentiment bullish for Bitcoin and Ethereum. However, Ethereum’s price has been in a bullish trend in recent weeks, with the coin surpassing both the 50-day and 25-day moving averages and moving above the ascending trendline.
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