- The Fed’s actions and macro conditions can decide the further trajectory for Bitcoin going ahead.
- All eyes are currently on Ethereum’s Shaghai hardfork scheduled this month and the release of staked ETH in the market for withdrawals.
After a strong rally last month in March 2023, the world’s largest cryptocurrency Bitcoin (BTC) has entered a consolidation phase and has been flirting around the $28,000 level. As of press time, BTC is trading 0.4% up at a price of $28,375 and a market cap of $548 billion.
Bitcoin showed great resilience as the banking crisis unfolded in the US and Europe leaving the global markets on the edge of a recession. Amid this derailment in the banking sector, investors found Bitcoin as a safe haven and a more trusted asset in sight.
As the banking crisis unfolded in the US, the Fed was forced to pump an additional $300 billion to address the liquidity concerns. Many analysts believe that the era of quantitative tightening could soon come to an end. Glen Goodman told CoinDesk TV’s “First Mover” program said:
The current situation for bitcoin is pretty positive, that’s the reality on the ground. People are feeling brave enough now with this new liquidity to get back into what they consider big, profitable companies like Microsoft like Apple, and likewise, in the crypto market, they’re going for what are considered the safer cryptos, which are bitcoin and Etherium.
Ethereum (ETH) Makes A Move Above $1,850
The world’s second-largest cryptocurrency Ethereum (ETH) has also been following in the footsteps of Bitcoin. So far in 2023, the ETH price is up by more than 50% and has been flirting around the $1,800 level.
Ethereum (ETH) seems to have gained strong momentum by shooting nearly 3.5% in the last 24 hours and is currently trading at $1,861 with a market cap of $225 billion. Popular crypto analyst Ali Martinez explains:
Ethereum appears to be breaking out! On-chain data reveals that the next critical resistance area is between $2,100 and $2,150, where over 200K addresses had previously purchased over 18M $ETH.
Courtesy: IntoTheBlock
The Ethereum blockchain is scheduled to undergo a major upgrade aka the Shanghai hardfork this month. The Shapella upgrade will unlock a massive 16 million staked ETH leading to a massive supply surge. Several analysts also fear that this supply surge could lead to strong selling pressure for ETH going ahead. Besides, the options market is also positioning itself around the Shghai upgrade.
Options market taking center stage for #Ethereum Shanghai. Puts are now at a premium (1 Week), suggesting the market is cautious about the potential of “unlocks” in the short term.
Options OI by strike price for April 7 has over 50k puts for a strike price of $1,600. pic.twitter.com/2KPhqpmaNS
— James V. Straten (@jimmyvs24) April 4, 2023
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The Twitter and Dogecoin Saga
In a surprise move on Monday, April 3, billionaire Elon Musk changed the Twitter logo replacing it with the DOGE meme of the Dogecoin cryptocurrency. This was enough to send the DOGE price up by more than 30%.
Ever since Musk acquired Twitter, many in the crypto community believe that dogecoin will become the currency of Twitter in the future. The recent teasing by Elon Musk ignites further hopes for the same.
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