Both bitcoin and ether posted modest gains on Sunday, with BTC breaking through $20,000 and ETH hitting the $1,400 mark. However, labor force statistics for February showed a depreciation of the dollar due to slower wage growth, which may explain the continued modest growth in the value of cryptocurrencies.
Additionally, the adoption of layer 2 solution Ordinal is expanding the use cases of the Bitcoin network beyond BTC transactions. While there is disagreement about the use of Ordinal in the Bitcoin community, its growing popularity and potential impact on the Bitcoin network could be a game-changer for BTC miners.
Ordinal’s ability to enable fast and cheap transactions could lead to increased adoption of Bitcoin and possibly reduce the load on the network. This could ultimately increase the efficiency and profitability of BTC miners. This has been identified as one of the key factors that could help BTC regain strength and rise in price.
A Weaker Dollar Boosts Cryptocurrency Markets
Global cryptocurrency markets have seen heavy losses over the past week, with bitcoin and ethereum both dropping nearly 11 percent in value. But the price decline started to slow as the dollar weakened, and bitcoin started to recover some of its losses.
Interestingly, dollar weakness has been a key driver behind the recent cryptocurrency market surge. Still, labor force data released in February showed a slowdown in wage growth, pointing to easing inflationary pressures. That could keep the Fed on modest gains, reducing the dollar’s appeal.
While the U.S. economy quickly added employment in February, slowing wage growth and rising unemployment undercut expectations for a 50 basis point rise when Fed officials meet in two weeks.
However, given ongoing regulatory concerns and recent market volatility, the performance of the cryptocurrency market and the U.S. dollar remains uncertain in the coming weeks.
Silicon Valley Bank’s liquidity crisis sparks fears of financial market contagion
Silicon Valley Bank (SVB), a major financial institution serving venture capital firms, was hit hard by the liquidity crisis. The bank’s troubles have raised fears of contagion in financial markets and concerns over its potential impact on the wider economy.
Notably, the bank, headquartered in Santa Clara, California, provides a range of financial services to venture capital firms and their portfolio companies. SVB is known for its expertise in the technology sector and has played a vital role in the growth of the venture capital industry in Silicon Valley.
However, recent reports have highlighted the bank’s financial woes, with insiders reporting “serious liquidity problems” at the institution. Reports suggest the bank has struggled to maintain its funding levels, leading to concerns that it may not be able to meet its obligations.
It is worth noting that the news of the SVB liquidity crisis sent shockwaves through the cryptocurrency market, with prices of major Crypto assets falling. The cryptocurrency market, which has been on a bull run for the past month, was hit hard by the news, with bitcoin and ethereum dropping sharply in value.
The focus will be on how SVB and other financial institutions responded to the crisis and whether the fallout can be managed. However, like other financial markets, the cryptocurrency market will be watching developments closely in the coming weeks as investors look for signs of stability and a return to normalcy.
SEC Rejects VanEck’s Bitcoin Trust Proposal: Implications for BTC
Notably, the U.S. Securities and Exchange Commission (SEC) once again rejected VanEck’s proposal to create a spot bitcoin trust that would allow investors to trade bitcoin on regulated exchanges. The decision marks nearly 20 similar rejections over the past six years, as the SEC hesitated to approve any such applications.
SEC rejected VanEck’s proposal to list a #Bitcoin ETF for the third time. pic.twitter.com/cnCLVt3TnS
— CryptoCurrency News (@CryptoBoomNews) March 11, 2023
The SEC cited concerns about market manipulation, liquidity and valuation in rejecting VanEck’s proposal. However, the committee also pointed out that the cryptocurrency market still lacks transparency and regulation to ensure that investors’ interests are protected.
Rejecting VanEck’s proposal could have a negative impact on bitcoin prices in the short term, as it reduces investors’ options for investing in crypto through regulated channels. It also highlights the regulatory challenges cryptocurrencies continue to face in the United States.
bitcoin price
Today, Bitcoin’s real-time price is $21,515, with a 24-hour trading volume of $22.8 billion. Bitcoin is up 5.00% in the past 24 hours. It currently ranks #1 on CoinMarketCap with a real-time market cap of $415 billion.
Bitcoin has bounced off the $19,850 support. If it breaks below this level, it could trigger selling pressure and lead to a further decline towards the $16,400 level.
Bitcoin price chart – Source: Tradingview
On the other hand, the first hurdle for bitcoin is the $21,700 resistance. 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, Bitcoin could even reach the $25,150 mark.
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Top 15 Cryptocurrencies to Watch in 2023
Check out Industry Talk’s curated list of the top 15 altcoins to watch in 2023, curated by Cryptonews. The list is regularly updated with new ICO projects and altcoins, so be sure to check back often for updates.
Disclaimer: The Industry Talk section features insights from cryptocurrency industry participants and is not part of 0xzx.com’s editorial content.
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Cryptocurrency Price Tracker – Source: Cryptonews
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