Major coins traded in the red on Wednesday evening as investors reacted to the possibility of a European banking crisis arising from worries surrounding Credit Suisse Group CS.
| Cryptocurrency | Gains (+/-) | Price (Recorded 9:30 p.m. EST) |
|---|---|---|
| Bitcoin | -2.50% | $24,346 |
| Ethereum | -3.97% | $1,649 |
| Dogecoin | -7.78% |
$0.069
|
What Happened: Apex cryptocurrency Bitcoin BTC/USD experienced sharp volatility, dropping to $23,946 before quickly regaining ground to trade at $24,346. That was still a ways off its highs of the previous day when it surged past $26,000 in response to mildly upbeat consumer price index inflation data for February.
Ethereum ETH/USD was down about 3.97% at below $1,700. Dogecoin DOGE/USD was trading at $0.069, down 7.78% in the last 24 hours.
At the time of writing, the global cryptocurrency market capitalization stood at $1.06 trillion, a decrease of 3.74% over the last day.
U.S. stocks traded mixed on Wednesday. The S&P 500 dropped 0.7%, while the Nasdaq Composite eked out a small gain, rising 0.05%.
See More: Best Crypto Day Trading Strategies
News Highlights: Coinbase Global COIN on Wednesday said it was preparing to end support for six altcoins built on Ethereum: Rally RLY/USD, DFI Money YFII/USD, Mirror MIR/USD, OMG Network OMG/USD, Loom Network LOOM/USD, and Augur REP/USD.
Euler Finance sent a message to the hackers who caused the platform to lose nearly $200 million in assets: “If 90% of the funds are not returned within 24 hours, tomorrow we will launch a $1M reward for information that leads to your arrest and the return of all funds.”
Analyst Notes: “Bitcoin weakened as chaos across Wall Street saw another banking crisis trigger another wave of panic-selling of risky assets. Credit Suisse is a bigger story than SVB, and this has Wall Street extremely nervous. Bitcoin’s decline isn’t that bad when you consider how much pressure is hitting stocks, oil prices, and the euro. Banking turmoil could ultimately prove to be rather bullish for Bitcoin, but for now crypto weakness is justified,” said Edward Moya, senior market analyst at OANDA.
Michael van de Poppe, founder and CEO of Eight Trading, urged people to buy Bitcoin and have a long-term horizon. He said, “Banks are down 10% on the day, as the dominos start to fall apart. Saving a few banks doesn’t say the system is safe,” he said.
Charles Edwards, founder and CEO of investment firm Capriole is confident that Bitcoin is finally seeing a “Textbook perfect Bump & Run Reversal” bottom, and he believes the target for Bitcoin is over $100,000.
Data analytics platform Santiment said volatility was “up in a big way” due to bank collapses, the shifting news on interest rates, and mounting fears over USDC.
Read Next: Web3 Token Surpasses Bitcoin, Ethereum In Weekly Gains With 33% Surge On Microsoft Tie-Up
