The analyst said that, depending on the news background, both up and down movements are possible in the bitcoin rate
Experts spoke about the prerequisites for the growth of the main crypto coin and about the trends in the digital asset industry. Vladislav Antonov, a financial analyst at BitRiver, believes that the rise in the value of bitcoin is due to the weakening of the US dollar and changes in expectations regarding Fed rates.
In his opinion, the Fed will not raise rates yet, so as not to complicate the current situation. We are talking about the recent tightening of monetary policy and, as a result, the collapse of three players in the banking sector at once.
“This has a positive effect on risky assets, including cryptocurrencies. The bitcoin rate has updated a three-week high above $24,800 on increased trading volumes. Now some traders could begin to close positions near the $25,000 resistance level, which stood in February. This is not surprising, since the price soared by 27% in just four incomplete days. This is too fast for a weak trend and an uncertain situation in the US banking sector (especially with banks associated with crypto projects),” the analyst said.
Vladislav Antonov considers the ideal situation at present to be “consolidation (of bitcoin) below the $25,000 level by March 22.” So crypto investors will be able to prepare for further growth.
The head of the analytical department of AMarkets, Artem Deev, believes that the growth of cryptocurrencies is associated with the promise of the US authorities to help clients of the collapsed Silicon Valley Bank recover their funds. Market participants also hope that in the future the Fed will move from raising rates to lowering them. This is a positive moment, since the first cryptocurrency correlates with the dynamics of the rate.
“Bitcoin is still stuck at $24,2000. Depending on the news background, movements are possible both up and down. It is worth waiting until the end of the week: by this time it will probably become clear what is happening — a repetition of 2008 or something worse. And perhaps the problem will be temporarily stopped by the efforts of the Fed, then it will be a strong positive, against the background of which both exchanges and bitcoin will go up (to the level of $26,000 is quite realistic),” concluded Artem Deev.
Analysts at Digital Currency Group believe that large investors continue to be interested in cooperation with crypto projects, although they may introduce some restrictions. Thus, banks are ready to open accounts for cryptocurrency companies, and restrictions will be determined depending on the volume of digital assets of such companies. The most loyal to the industry are Western Alliance and Bridge Bank.
