Bitcoin

Bitcoin soars as Silicon Valley Bank depositors get a regulatory lifeline

Published

1 week ago

March 13, 2023

Bitcoin soars as Silicon Valley Bank depositors get a regulatory lifeline

BTC’s price jumps by almost 10% in the last 24 hours.
This is due to the decision by U.S. regulators to protect all customer deposits at failed Silicon Valley Bank (SIVB).

Following the decision by the U.S. Department of the Treasury, Federal Reserve, and Federal Deposit Insurance Corporation (FDIC) to restore all customer deposits at failed Silicon Valley Bank (SVB), Bitcoin’s [BTC] price rallied by almost 10% in the last 24 hours.

On 11 March, BTC’s price suffered a significant drop below $20,000 following a mass withdrawal of funds by customers of SVB.

As a result of this, the California Department of Financial Protection and Innovation shut down the bank on the same day. This led to the de-pegging of various stablecoins and other associated cryptocurrencies.

Read Bitcoin [BTC] Price Prediction 2023-24

Improved sentiments, however, returned to the market as Federal regulators, in a joint statement on 12 March, announced the approval of “actions enabling the FDIC to complete actions in a manner that fully protects all depositors” at the failed bank.

Traders flock to the BTC market

Exchanging hands at $22,422.56 at press time and with a 9% jump in price in the last 24 hours, BTC logged a corresponding hike in trading volume during the same period.

Per data from CoinMarketCap, the coin’s trading volume was up by 40%. A jump in an asset’s trading volume with a price rally to show for it is taken as a bullish sign that indicates improved positive sentiment and continuation of the uptrend.

Data from Santiment confirmed the positive sentiment that lingered in the BTC market at press time. The coin’s weighted sentiment was a positive 7.114% at the time of writing, suggesting that investors believed in the continued growth of the asset’s price.

Further, BTC’s price movement assessed on a 12-hour chart revealed a pattern of growing coin accumulation. Key momentum indicators such as the Relative Strength Index (RSI) and the Money Flow Index (MFI) rested above their neutral lines in uptrend positions.

This suggested that coin accumulation exceeded the distribution at press time. BTC’s RSI was 55.49, while its MFI was 51.90.

Likewise, its Chaikin Money Flow (CMF) reclaimed its spot at the positive territory and posted a value of 0.02 at press time. A positive CMF value is a bullish sign that hints at increased liquidity needed to drive up the value of an asset.

Source: BTC/USDT on TradingView

Is your portfolio green? Check out the Bitcoin Profit Calculator

Be at alert

Meanwhile, pseudonymous CryptoQuant analyst Crazzy Blockk assessed BTC’s Unrealized Profit/Loss and found that the metric’s next direction would determine whether or not the BTC market would suffer another capitulation.

Regarding the Unrealized Profit/Loss metric, a value above zero indicates that most investors are in profit, while a value below zero implies a loss.

In the current market, “after two heavy capitulation phases in the BTC market, the price is testing level 0 of this metric,” Crazzy Blockk noted.

According to the analyst:

“If the bitcoin price can maintain this level and the profitability of bitcoins in holders’ pockets begin to rise, the recovery phase will happen.in this case, the bitcoin price could rise again. If the net unrealized Profit/Loss metric, based on the holders’ real value, decreases continuously, there will be a possibility of a third capitulation phase or another heavy pain in the market.”

Abiodun is a full-time journalist working with AMBCrypto. He is also a lawyer with over 2 years of experience. With a keen interest in blockchain technology and its limitless possibilities, Abiodun spends his time understanding the technology, building projects, and educating people about it.

Up Next

Is the SEC Overreaching in Crypto Enforcement? Coinbase Weighs in With Amicus Brief in Insider Trading Case

Don't Miss

USDC, SVB saga fuels massive profits for Ethereum [ETH] as Shanghai looms

Click to comment

Airdrop

Arbitrum Airdrop Goes Live: ARB Price Drops More Than 85%

Published

6 hours ago

March 23, 2023

Jamie Redman

Arbitrum Airdrop Goes Live: ARB Price Drops More Than 85%

On Thursday, the Arbitrum airdrop claiming process went live and ARB markets dropped more than 85% lower than pre-IOU market prices recorded the day before. Arbitrum airdropped just over a billion ARB tokens, or 11.6% of the total supply. At noon ET, more than 474 million tokens had been claimed.

Wild Volatility for ARB Token: Prices Range from $1.10 to $11.80 per Unit Following Airdrop

At block height 16,890,400, around 9 a.m. ET, the Arbitrum airdrop claiming process began and distribution of 11.6% of the supply started. The day before, Bitcoin.com News reported on exchanges listing IOU ARB markets just before the real ARB token launched on Thursday. At that time, ARB’s value in U.S. dollars was more than 85% higher. At the time of writing, a single ARB was trading for $1.25 per unit. The ARB token has seen wild volatility over the last 12 hours with prices ranging from $1.10 to $11.80 per ARB.

ARB’s price has been down despite bitcoin nearing $29,000 and ethereum rising to $1,855 per unit. ARB trade volume is much higher than the ARB IOU volumes recorded yesterday at $8.7 million. In the past 24 hours, roughly $849.81 million in ARB volume has been recorded. The top three crypto exchanges with the most ARB trading activity are Binance, Okx, and Bybit.

With 1.275 billion ARB in circulation, 474 million have been claimed by 244,255 unique addresses. Thirty-nine percent of eligible addresses have been claimed and more than 40% of the airdropped ARB has been received by recipients. At $1.25 per unit, ARB’s overall market valuation was $1.6 billion on Thursday afternoon at noon ET.

Tags in this story

Airdrop, arb, ARB airdrop, ARB tokens, Arbitrum, Arbitrum airdrop, Billion, Binance, Bitcoin, block height 16.890.400, Bybit, Circulation, claimed, claiming, Distribution, drop, eligible, Ethereum, Exchanges, Higher, IOU ARB markets, launched, listing, live, market, Markets, noon, Okx, pre-IOU, Prices, process, recipients, rising, single unit, Supply, Thursday, trade volume, U.S. Dollars, Unique addresses, valuation, Value, volatility

What do you think about the Arbitrum airdrop and its impact on the crypto market? Share your thoughts in the comments section below.

Jamie Redman

Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today.

Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

Analysis

Bitcoin, Ethereum Technical Analysis: BTC Below $28,000, ETH Falls Under $1,800 Following Fed Rate Hike

Published

11 hours ago

March 23, 2023

Eliman Dambell

Bitcoin moved below $28,000 on Thursday, as markets reacted to the latest Federal Reserve interest rate hike. The Fed opted to increase rates by 25 basis points (bps) as many had anticipated, and signal one more hike this year. Ethereum was also lower on the news, falling below $1,800.

Bitcoin

Bitcoin (BTC) dropped below $28,000 on Thursday, as markets continued to react to the latest Federal Reserve rate hike.

The Fed moved to increase rates by 25 basis points, whilst signaling that no cuts will be made this year.

BTC/USD fell to an intraday low of $26,760.00 on the news, which comes a day after trading at a peak of $28,803.34.

BTC/USD – Daily Chart

From the chart, the decline appears to have come as a result of the relative strength index (RSI) failing to break out of a ceiling at 72.00.

As of writing, the index is tracking at 66.54, with the next visible point of support at the 62.00 mark.

Overall, prices are still relatively overbought, which could lead to further bears reentering the market in the coming days.

Ethereum

In addition to BTC, ethereum (ETH) was also back in the red on Thursday, with prices moving below $1,800.

Following a high of $1,821.46 on Wednesday, ETH/USD declined to a low of $1,717.77 earlier in today’s session.

As a result of the slippage, ethereum neared a recent point of support at the $1,715 mark, however bulls have so far rejected a breakout.

ETH/USD – Daily Chart

Looking at the chart, the 10-day (red) moving average remained in an upward trend, which could be a sign of future bullish momentum.

Price strength is currently tracking at 58.02, which is marginally above a floor at 57.00, resulting in ETH jumping from earlier lows.

At the time of writing, ethereum is tracking at $1,756.34.

Register your email here to get weekly price analysis updates sent to your inbox:

Tags in this story

Do you expect ethereum to move back above $1,800 this week? Leave your thoughts in the comments below.

Eliman Dambell

Eliman was previously a director of a London-based brokerage, whilst also an online trading educator. Currently, he commentates on various asset classes, including Crypto, Stocks and FX, whilst also a startup founder.

Image Credits: Shutterstock, Pixabay, Wiki Commons

Binance

Binance’s Bitcoin liquidity for TUSD surges 250%

Published

14 hours ago

March 23, 2023

Oluwapelumi Adejumo

Binance’s Bitcoin liquidity for TUSD surges 250% Oluwapelumi Adejumo · 6 hours ago · 2 min read

Kaiko’s director of research Clara Medalie said the zero-trading fee option helped improve Binance’s market share by 20% within eight months.

2 min read

Updated: March 23, 2023 at 10:20 am

Cover art/illustration via CryptoSlate

Binance’s Bitcoin (BTC) liquidity for its TrueUSD (TUSD) rose more than 250% on March 22 after it phased out its zero-fee trading for other stablecoins.

Kaiko Data researcher Riyad Carey highlighted that the exchange’s BTC liquidity for Binance USD (BUSD) and Tether’s USDT declined by 60% and 70%, respectively.

Source: Kaiko

Meanwhile, the exchange’s liquidity for TUSD increased to 29 BTC from 9 BTC within a few hours.

On March 15, Binance announced it was moving the zero-fee BTC trading feature from BUSD to TUSD on March 22. At the time, CEO Changpeng ‘CZ’ Zhao blamed the regulatory upheaval the other stablecoins faced for the firm’s decision.

Will this decision affect Binance’s market share?

Kaiko’s director of research, Clara Medalie, highlighted the role the zero-trading fee option played in improving Binance’s market share.

Source: Kaiko

According to Medalie, the free trading option helped Binance gain an additional 20% of the market since it was introduced in July 2022. At the time, Binance controlled only 50.5% of the market; however, the exchange’s market control increased to 72% following FTX’s collapse in November 2022.

Source: Kaiko

Additional information from Kaiko pointed out that the zero-trading option accounted for 61% of the total volume on Binance as of the previous week.

Binance users drawn to the exchange because of its zero-fee feature could leave for other rival platforms, Medalie noted.

TUSD keeps growing

Binance’s decision would greatly benefit TUSD — emerging as a significant winner from its rivals’ recent debacle.

Carey added that Binance’s decision showed that it had made an apparent move to promote TUSD as the successor to BUSD.

Since the crackdown on BUSD, TUSD has seen its circulating supply double to over $2 billion and become the second-largest stablecoin on the Tron network. During the period, Binance minted more TUSD stablecoin and added new trading pairs for the asset.

Meanwhile, Protos’ researcher Bennett Tomlin pointed out that TUSD is one of the weirdest stablecoins in the crypto market. According to the researcher, TUSD has some undisclosed relations with Justin Sun, and bankrupt Alameda Research was also a lead investor in the asset.