Bitcoin Falls After JP Morgan Acquires FRB
By Laxmikant Khanvilkar
Fast move by JP Morgan to acquire embattled First Republic Bank has helped contain contagion besides underlining the preparedness of Federal regulators to address such crisis.
As a result, the leading virtual digital assets or VDAs suffered a losses.
Bitcoin (BTC), the largest cryptocurrency by market capitalization, kicked off trading session below $28,000 at one point of time. Most recently it was trading at about $28,100, down over 4% over the past 24 hours.
The announcement of banking giant JPMorgan winning the auction to purchase First Republic assets has sent markets lower.
As per Edward Moya, senior market analyst for foreign exchange Oanda, the fast response to First Republic’s implosion showed the banking sector was prepared to address these types of crises, which has removed the risk from the table.
Ether (ETH), the second-largest cryptocurrency by market capitalization, followed a similar pattern to bitcoin, dropping more than 2% to change hands at around $1,834.
IC Index, the barometer of the top 15 coin, was recently quoting at 38,451 level down 2.6%
The global crypto market cap lost 3.32% to $1.16 tn, over the last day. The total crypto market volume increased by 23.72% to $40.24 bn. The total volume in DeFi is currently $2.76 bn, 6.86% of the total crypto market volume. The volume of all stablecoins is now $37.60 bn, which is 93.45% of the total crypto market volume. Bitcoin’s dominance is currently 46.63%, a decrease of 0.51% over the day.
Elsewhere, equities were closing lower Monday, with the S&P 500, Wall Street’s benchmark equity index, down 0.04%. Both the Dow Jones Industrial Average (DJIA) and tech-heavy Nasdaq Composite recently slid 0.1%.
Investors will be eyeing the Federal Open Market Committee (FOMC) monetary policy meeting, which begins Tuesday to decide whether to boost interest rates and by how much. The CME’s FedWatch tool currently sets the probability of a 25 basis point (bps) increase at more than 94%, which would boost the target range to between 5% and 5.25%.
Analysts expect price of Bitcoin, Ether to witness wild fluctuation in the near term. Meanwhile, technical suggests that the BTC has strong resistance between $30,000 and $31,000.
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