- Bitcoin has surged above $27.8k for the first time since June 2022, potentially due to the collapse of Silicon Valley Bank (SVB), which has led to ripple effects throughout the banking sector.
- Bitcoin may soon cross the $30k mark, while Ethereum is nearing $2k in parallel.
Bitcoin has been on a tear in March, breaking above $27.8k for the first time since June 2022. One key event that appears to have contributed to this surge is the collapse of Silicon Valley Bank (SVB), causing ripple effects throughout the banking sector. Crypto enthusiasts view this as a positive development, as they see crypto as an anti-authoritarian alternative to the corrupt fiat system.
As per Santiment’s analysis, the March rally in crypto prices is legitimate, and the upward trend is expected to continue over the weekend. Bitcoin may soon cross the $30k mark, while Ethereum is on the verge of reaching $2k in parallel.
At the time of writing, Bitcoin is trading at around $27,500, up nearly 7% over the last 24 hours. Meanwhile, Ethereum is trading at around $1,820.
Distrust of traditional currency has led to a surge in anti-fiat options, including stablecoins. However, recent controversy has caused the depeg of USDC, leading to a crisis. Instead of accumulating Bitcoin, traders put their money into altcoins or swapping stablecoins. CZ Binance has announced that its exchange will convert $1 billion into native crypto, which could be correlated with the recent surge in Bitcoin prices.
While accumulation signs for Bitcoin are fairly flat, the number of whale transactions has been steadily growing since December. Token circulation is also picking up, which is a positive long-term sign. However, the on-chain profit-taking ratio is at its highest since December 2020, increasing the likelihood of a short-term correction.
Altcoin traders should closely monitor the market, as many assets are overheated. While traders may show high FOMO in the coming days, discipline is important in decision-making. It is crucial to de-risk and take the profit out amid rising funding rates and unironic calls for lambos and moons.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
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