In an interview with Cointelegraph en Español, Guillermo Escudero, Country Manager of CryptoMarket in Argentina, analyzed the behavior of bitcoin in the first quarter of this 2023, and explained that the banking crises, together with the rises in interest rates, have catapulted bitcoin above 28 thousand dollars currently.
In this way, Guillermo Escudero argued that “This 2023 was no stranger to relevant macro events in an already bearish context, with markets hit and private companies with financial potholes that cost systematic bankruptcies and multimillion-dollar losses, which generated new standards not only in the crypto industry, but also in fintech. general”.
Going deeper into the subject, he indicated that the first event to highlight is “the bankruptcy of 3 banks and the purchase (in the form of a rescue) of neither more nor less than Credit Suisse by its competition UBS. The 3 banks that failed were SVB (Silicon Valley Bank, today bought by First Citizen), then Signature Bank and finally Silvergate Corp, which even offered crypto services.”.
Likewise, he ensures that the bitcoin price is not usually unrelated to these macroeconomic conditions, he also considers that bitcoin has benefited from the inefficiency of the monetary systemand this situation confirms that bitcoin is an alternative to the traditional financial system. A new independent financial system that is not clinging to centralized control.
Bitcoin price in the last six months – Source: TradingView
The graph shows that, on March 8, the price of bitcoin was at $22,279, and after the news from the Silvergate Corp bank was released, it fell to $21,853, with a negative variation of 1.91%; in addition, it can be seen that on March 10, the price fluctuation was close to 19,574 dollars, and it was positioned close to 24,489 with an impulse of 25.11% despite the fall of the Silicon Valley bank; then the chart shows that when the Signature Bank news was released, the price increased from 21,813 to 24,489, showing resistance in the operating bands, and the chart ends by showing the time of the purchase of Credit Suisse by UBS and manages to push the price further, taking the value from $24,887 to $28,463.
Escudero showed the behavior of the cryptoactive in the following graph: “Except for 03/08, the day a company related to the crypto market went bankrupt, a slight decline of almost 2% was generated, after 03/10 an upward impulse was generated from $19,574 to $28,463, equivalent to 45 % rise with a strong buying volume and confirming this current zone”, taking the values at the time of writing this note.
In the same way, he made a comparative analysis with another asset, in this case he took gold and said that: “It is also traded in the crypto markets for having its PAXG token, available on platforms such as CryptoMarket, which is very similar to bitcoin and usually reacts to certain events similarly, given the high correlation between the two.”.
PAXG Price from Jan 2022 to Now – Source: TradingView
Like the bitcoin chart, PAXG shows similar fluctuations. The CTO recounted that “Since the string of banking crises began on 03/08, gold has risen by almost 10%, reaching highs it had not seen 1 year ago, even considering that the context of global geopolitical tension did not stop and we are in a scenario mobilization of the ‘tectonic plates’, speaking macroeconomically and politically in analogy”.
Guillermo took the opportunity to refer to the federal reserve interest rates of the United States, in this regard said that “we have interest rates involved in the middle of all these events, which generates a lot of movement in the traditional markets”.
He went on to say that “bitcoin is no stranger to these changes and as we can see in the table below, for 1 year the FED has not stopped adjusting upwardsgoing from 1.75% to the current 5.00%, which generates a setback in the traditional markets and a not necessarily homogeneous behavior of bitcoin, since an all-time high of $69,000 was seen in July 2021, but then fell back to $15,500 in November 2022, mainly as a result of the failed FTX exchangea fact that greatly affected the crypto market, which was already experiencing setbacks due to depressed global markets and constant rate adjustments”.
Historical Interest Rates in the United States – Source: Investing
Finally, he has been consulted on the perspectives that it has on bitcoin this 2023, taking into account the growth that has shown the first months of this yearand in this sense he told us that: “From CryptoMarket we do not forecast future prices, but we do understand market moments, and we see that this banking crisis and constant interest rate adjustments generated a rise in bitcoin that fills the market with optimism, since we now have a support (floor) in the area of 28 thousand dollars, and this means that the movements, whether with bullish or bearish intention, will be in this area”.
Likewise, he went on to say that the current price “It is far more optimistic than the $18,000 area in which it had been lateralizing after the fall towards $15,500, for which we see a positive outlook for bitcoin price, but not so positive for global finance given that if the crisis continues to be the order of the day we will be able to see a society that continues to pay the piper of a cyclically faulty monetary system”.
The CryptoMarket Country Manager has told us that The most important thing, beyond the price, is that people continue to educate themselves financiallyand that the cryptocurrency market is already more mature and aware of the risks associated with these assets, but despite all this, The growth of the ecosystem does not stop and it is a good sign for the Bitcoin network mainly, but for cryptocurrencies in general.
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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