At present, an important movement is being seen in the cryptocurrency market, which has undoubtedly taken many analysts by surprise, who were not so optimistic with a new bull run in Bitcoin; However, the chaotic banking situation in the United States completely changes the entire panorama for investors and citizens, possibly causing them to begin to see again in the largest cryptoactive on the market, that refuge or asset used as a store of value.
A week ago, eToro pointed out that The crypto-asset market soared late last Sunday, when the US banking crisis took on a new turn with the closure of Signature Bank, a New York bank.to this day this seems to be continuing to push the price of Bitcoin, which since then managed to overcome the resistance of 25,000 USD and today struggling to overcome that of 29,000 USD.
In this context, Simon Peters, an expert analyst in crypto assets from the multi-asset investment platform eToro, has shared some comments on the current situation in the crypto asset market with Cointelegraph en Español for this week of March.
According to Peter, Crypto asset markets made a breakthrough last week, with Bitcoin posting its best performance since early 2021even in the midst of continued uncertainty in the capital markets “More spacious”; however, in the analyst’s opinion, it is still too early to say that we are out of danger.
“Bitcoin started last week around $22,000 but made significant gains on Tuesday’s US CPI data, regaining ground above $25,000 for the first time since last summer.”he pointed.
Likewise, he stated that potentially the BTC price was also boosted by the liquidation of short positions in futures, which added more buying pressure and caused a rise to more than $27,000 on Friday.
“Ethereum followed suit, hitting a six-month high above $1,700 on eToro on Tuesday and breaking above $1,800 over the weekend.”added Peters.
The echoes of the Great Financial Crisis cause the resurgence of Bitcoin
Although the exact scope and implications of the current US banking crisis remain to be seen, Peters noted that the inevitable echoes of 2008 have many anticipating a change in fortunes for crypto investors and a revival in the use of Bitcoin in particular.
“Michael J. Casey of CoinDesk was one of the commentators who reminded us last week that Bitcoin is a child of the global financial crisis, and that its blockchain rose from the rubble of Wall Street as an alternative to the centralized financial system, whose checks and balances proved insufficient”Peters noted.
In this sense, he pointed out that With all eyes on the Federal Reserve’s interest rate decision today, by now it is clear that Bitcoin’s behavior in a high rate environment remains very much tied to central bank policy.
“However, after months of depressed activity in the crypto-asset market, the events of the past week will already have convinced many new and existing investors that the philosophy of Bitcoin – and DeFi in general – is still as relevant today as it is. always”he remembered.
Ethereum Developers Target April 12 for Shanghai Update
Regarding Ethereum, Peters commented that on Thursday, Ethereum developers set the official date of April 12 for the long-awaited Shanghai hard fork, technically dubbed “Shapella.”
As explained, this upgrade will complete the long-awaited transition of Ethereum to a proof-of-stake (PoS) network, which went live with the Fusion in Septemberwhen moving to a PoS consensus mechanism using validators instead of miners.
Until now, those validators had to stake 32 ETH to join the blockchain, but they couldn’t withdraw those deposits or the associated rewards. “This will change on April 12”they highlighted and also clarified that after Shapella, the ETH wagered by the validators will be unlocked and it will depend on them what they do with them: keep them, sell them or change them to another liquid betting service.
“While we cannot speculate on the specific market pressures that may influence those decisions four weeks from now, the event naturally raises the possibility of large redemption requests, so ETH investors should be aware of the potential volatility around at that time”Peters noted.
The changing distribution of ETH supply shows how the sharks are closing in on the whales
Continuing with Ethereum, Peters also highlighted that another notable development of the past week was the data that on-chain analytics firm Santiment showed about the asset allocation among large ETH investors, and its significant change in the last twelve months.
“The so-called sharks (holding 10 to 10,000 assets) have experienced a net increase in assets over the past year, while whales (holding 10,000 to 10,000,000 assets) have experienced a net decline, i.e. a net sale ”Peters noted.
“Whales still own about 51% of the total ETH supply, so the balance of market pricing influence has yet to be reversed, but the difference is small enough to warrant some attention.”he added.
Disclaimer: The information and/or opinions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information presented here should not be taken as financial advice or investment recommendation. All investment and commercial movement involve risks and it is the responsibility of each person to do their due research before making an investment decision.
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