BTC, ETH Extend Fall; Ignore Latest Bank Crisis
By Laxmikant Khanvilkar
Leading virtual digital assets (VDAs) have briefly slipped below key psychological level on Friday early trades, even as the U.S. regional banking crisis persist. In the latest bank run case, an outflow of deposits at PacWest Bancorp (PACW) that sent the Los Angeles-based bank’s stock price down 22% on Thursday. However, it failed to generate similar frenzy in crypto buying as was witnessed in earlier cases – SVB, Signature etc.
Bitcoin (BTC), the largest cryptocurrency by market capitalization, dropped below the key threshold $27,000 for the first time since March, regained the threshold before falling again. Most recently it was trading 1.8% lower at $27,048. Ether (ETH), the second-largest cryptocurrency by market capitalization, followed a similar trend. ETH dropped below $1,800 for the first time since late April. It recently hovered near $1,800 mark. Layer 2 blockchain Polygon’s MATIC token slid over 4% to trade at around $.84 cents.
“Banking contagion fears still remain low as some banks like Western Alliance show deposits are rising,” wrote Edward Moya in a report.
The markets appear calm currently, which is according to analyst “It’s a little bit of calm before the storm right now”.
The global crypto market cap decreased 2.11% to $1.12 tn over the last 24-hours. The total crypto market volume slumped 17.87% to $37.67 bn. Of this, the total volume in DeFi is currently $2.61 bn, 6.94% and all stablecoins volume is $34.04 bn or 90.36% of the total crypto market volume. Bitcoin’s dominance is currently 46.82%, an increase of 0.01% over the 24-hours.
IC15, the barometer of top 15 tokens was recently quoting at 37,533 level, down 1.14%.
Elsewhere, the traditional markets were mixed, with the S&P 500 and Dow Jones Industrial Average (DJIA) dropping by 0.1% and 0.6%, respectively. The tech-heavy Nasdaq was up 0.1% for the day.
Meanwhile, the trading platform Robinhood (HOOD) reported cryptocurrency trading revenue of $38 million for Q1 2023, a decline of around 30% compared to $54 million for the year-earlier period, according to the company’s earnings results. On a quarterly basis, however, crypto revenue declined just 1%.
It has also reported holding around $11.5 billion worth of VDAs, up 36% from the fourth quarter, reflecting the rebound in the market in early part of 2023.
You need to login in order to Like
