Bitcoin, the world’s largest cryptocurrency, made gains on Tuesday, approaching the $25,000 mark, as bank withdrawals surged following the collapse of several major banks, including Signature Bank, Silicon Valley Bank, and First Republic Bank. Meanwhile, Ethereum also rose higher, breaking through a key resistance level in the process.
Bitcoin extended its recent gains, rising for the fourth consecutive session. Banking stocks started the week lower, with investors seemingly diverting funds towards cryptocurrencies. After hitting a low of $21,918.20 in yesterday’s session, BTC/USD surged to an intraday peak of $24,851.62 earlier in the day. As a result, bitcoin rose to its strongest point since February 21, recovering from a recent two-month low in the process.
At the time of writing, the relative strength index (RSI) is tracking at 63.41, marginally below a wall at 66.00, with BTC trading at $24,368.14. The bulls seem to be on a collision course with a ceiling at $25,000, but momentum has eased as the RSI approaches its own resistance.
Bank withdrawals at JPMorgan and Citibank are nearing a 10-year high, in what could signal an exodus of deposits from traditional banks towards cryptocurrencies. Furthermore, First Republic Bank’s stock has dropped by over 60% on Monday, marking yet another major firm to fall. These developments, coupled with the rise of cryptocurrencies, suggest a significant shift in the banking and finance landscape.
Ethereum also moved higher on Tuesday, with prices breaking out of a key resistance point. ETH/USD hit a high of $1,699.91 earlier in the day, which comes less than 24 hours after hitting a low of $1,576.06. The move came as prices moved past a long-term ceiling at $1,675, hitting a three-week high in the process.
Looking at the chart, momentum has somewhat slipped, which comes as the RSI ran into an obstacle in the form of a resistance point. Price strength failed to move beyond the aforementioned zone at 62.00, and as of writing, the RSI is tracking at 60.28. In order to fully break into the $1,700 region, ETH bulls will first need to get over this ceiling at 62.00.
The surge in Bitcoin and Ethereum prices reflects a broader trend in the cryptocurrency market. Bitcoin has already surged over 90% this year, as demand from institutional investors increases. The rise in institutional interest can be attributed to a number of factors, such as a growing acceptance of Bitcoin by mainstream financial institutions, as well as the US Federal Reserve’s commitment to keeping interest rates low for the foreseeable future.
Cryptocurrency exchanges are also capitalizing on the surge in demand, with Coinbase going public through a direct listing on Nasdaq. The company’s shares were initially priced at $250 each but soared to $429 in their first day of trading, valuing the company at over $100 billion at one point.
In conclusion, the cryptocurrency market has been on an upward trajectory, driven by a range of factors. The rise of Bitcoin and Ethereum prices reflects a broader trend towards cryptocurrencies and away from traditional banking and finance. As cryptocurrencies become increasingly mainstream and institutional investors continue to flock to the market, the future of finance looks set to be dominated by blockchain technology and decentralized currency.
