Despite the inherent volatility of the cryptocurrency market, Bitcoin (BTC), the renowned digital currency, has managed to maintain its upward trajectory and continues to trade at above $28k. This is a notable accomplishment for Bitcoin, which has faced significant challenges in recent months due to an extended bearish trend.
However, the current instability of the global financial system is believed to be one of the primary drivers of its recent price surge, as investors have traditionally sought out Bitcoin as a safe haven during times of market uncertainty.
Bitcoin has traditionally served as a safe haven for investors in times of economic uncertainty. As a result, the recent bankruptcies of several banks, rising inflation rates, and US Federal Reserve policies have all played significant roles in driving up the value of BTC.
Moving forward, traders appear to be hesitant to make any significant investments ahead of the upcoming Federal Reserve interest rate decision. It is widely anticipated that the bank will raise interest rates by 25 basis points (bps), a move that could have a significant impact on the cryptocurrency market.
Crypto Market Remains Upward, Boosting Bitcoin Amidst Cautious Investor Sentiment
The global cryptocurrency market has continued its upward momentum, with prices remaining largely in the green. However, investor caution persists in light of the instability of the banking sector.
Despite attempts to allay concerns, apprehensions about worsening economic conditions and uncertainties persist, leading many investors to turn to digital assets such as Bitcoin.
The current uncertain economic climate has prompted investors to seek diversification and safe-haven investments in digital assets, which has been identified as one of the primary factors contributing to the rise in BTC prices.
It’s worth noting that the cryptocurrency market will likely continue to be impacted by volatile market conditions and regulatory actions in the coming weeks and months.
Nonetheless, the surge in BTC prices is a positive sign for investors seeking a dependable alternative investment.
US Dollar Slightly Rises on Increased Risk Appetite, Bitcoin Retains Status as Safe-Haven Investment
The broad-based US dollar experienced a slight uptick but remained near a five-week low as traders resumed investing in riskier assets following UBS’s acquisition of Credit Suisse.
Although the takeover has alleviated concerns about a potential banking crisis, market sentiment remains somewhat cautious as investors are uncertain about the extent of the challenges facing the banking sector.
Due to the decrease in risk appetite, the value of the safe-haven US dollar has increased. Additionally, this news has had a positive effect on BTC, as it is also viewed as a safe-haven investment.
At present, Bitcoin is trading at $28,000, with a 24-hour trading volume of $41.4 billion, and has recorded an increase in value of nearly 2% over the past 24 hours. As of Tuesday, the BTC/USD pair is consolidating near the $27,500 threshold, having surpassed the resistance level of $27,750. If this bullish trend persists, Bitcoin’s value could potentially ascend towards $29,250 or $30,700.
In the event that the support levels at $26,700 or $25,200 are breached, Bitcoin’s next support level will be at $23,150. Nevertheless, despite the possibility of downturns, the overall trend for Bitcoin remains bullish, thanks to the formation of bullish engulfing candles.
Ethereum is currently valued at $1,748, with a 24-hour trading volume of $10.1 billion, and has experienced a decrease of almost 0.50% over the same 24-hour period.
The ETH/USD pair is exhibiting a slight correction, albeit with less momentum than Bitcoin. Ethereum is currently facing difficulty in breaking through the $1,800 barrier and it’s holding near the $1,700 support zone.
In the event that the ETH/USD pair successfully surpasses 1,800 level, it is expected to encounter resistance at the $1,900 threshold.
On the downside, the ETH/USD pair is anticipated to secure immediate support at either the $1,700 or $1,620 level.
This article was originally published by CryptoNews.