On Sunday, both Bitcoin and Ethereum rose slightly in value, with BTC surpassing $20,000 and ETH reaching the $1,400 mark. However, the weaker U.S. dollar as a result of slower wage growth in the February labor report may be responsible for this continued modest rise in cryptocurrency values.
Additionally, the adoption of Ordinal, a Layer 2 solution, has expanded the use cases of the Bitcoin network beyond just BTC transactions. There have been mixed opinions about using Ordinal in the Bitcoin community, but its growing popularity and potential impact on the Bitcoin network could change the game for BTC miners.
Ordinal’s ability to enable fast and cheap transactions could increase Bitcoin adoption and reduce network load. This could ultimately make his BTC miner more efficient and profitable. This has been identified as one of the key factors helping BTC regain its strength and push the price higher.
Weaker Dollar Boosts Crypto Market
Global cryptocurrency markets have suffered heavy losses over the past week, with both Bitcoin and Ethereum losing almost 11% of their value. However, as the US dollar weakened, the price decline began to slow, and Bitcoin began to recover some of its losses.
Interestingly, the weak US dollar has been a key factor behind the recent surge in the cryptocurrency market. Nonetheless, February’s labor data showed slower wage growth, suggesting lower inflationary pressures. This may encourage the Federal Reserve to keep rate hikes modest, making the US dollar less attractive.
The U.S. economy picked up jobs quickly in February, but slowing wage growth and rising unemployment have dampened hopes of a 50 basis point rate hike when the Federal Reserve meets in two weeks’ time. I’m here.
However, given ongoing regulatory concerns and recent market volatility, it remains uncertain how the cryptocurrency market and the US dollar will perform in the coming weeks.
Silicon Valley Bank Liquidity Crisis Raises Fears of Financial Market Contagion
Silicon Valley Bank (SVB), a leading financial institution that services venture capital firms, has been hit hard by the liquidity crisis. The banking troubles have sparked fears of contagion in financial markets and raised concerns about the potential impact on the broader economy.
Headquartered in Santa Clara, California, it is worth noting that the bank offers a variety of financial services to venture capital firms and their portfolio companies. SVB is known for his expertise in the technology sector and has played a key role in the growth of his Silicon Valley venture capital industry.
However, recent reports have highlighted the bank’s financial difficulties, with insiders reporting “serious liquidity problems” at the bank. The report suggests banks are struggling to maintain funding levels, leading to concerns that they will be unable to meet their obligations.
It is worth noting that the news of SVB’s liquidity crisis shocked the cryptocurrency market, causing prices of major digital assets to fall. The cryptocurrency market, which had been in a bull market last month, was hit hard by the news as the value of Bitcoin and Ethereum plummeted.
The focus will be on how SVB and other financial institutions respond to the crisis and whether the impact can be contained. However, the crypto market, like any other financial market, will be closely watched in the coming weeks as investors look for signs of stability and normalcy.
SEC Rejects VanEck’s Bitcoin Trust Proposal: Implications for BTC
It is worth noting that the U.S. Securities and Exchange Commission (SEC) has 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 denials over the past six years, due to the SEC’s reluctance to approve such applications.
— CryptoCurrency News (@CryptoBoomNews) March 11, 2023
The SEC cited market manipulation, liquidity, and valuation concerns in denying VanEck’s proposal. However, the commission also noted that the cryptocurrency market still lacks transparency and regulation, making it difficult to ensure investor interests are protected.
The rejection of VanEck’s proposal could have a negative impact on Bitcoin’s price in the short term as it reduces investors’ options to invest in cryptocurrencies through regulated channels. It also highlights the regulatory challenges that cryptocurrencies continue to face in the United States.
Bitcoin currently has a live price of $21,515 with a 24-hour trading volume of $22.8 billion. In the last 24 hours, Bitcoin has risen 5.00%. He currently holds the top spot on CoinMarketCap, with a current market cap of $415 billion.
Bitcoin has bounced off the support level of $19,850. A break below this level would likely have provided selling pressure and led to a further drop towards the $16,400 level.
Meanwhile, Bitcoin’s first hurdle is the $21,700 resistance level. If Bitcoin rises above this level, there will be buying pressure that could push the price towards his $23,175 level.
Bitcoin could even reach $25,150 if the bullish momentum continues.
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Top 15 Cryptocurrencies to Watch in 2023
Check out our curated roster of industry talks on the top 15 altcoins to watch in 2023, curated by Cryptonews. The list is updated regularly with new ICO projects and altcoins, so check back often for the latest developments.
Disclaimer: The Industry Talks section features insights from crypto industry insiders and is not part of the editorial content of Cryptonews.com.
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