Last week, Bitcoin (BTC-USD) looked like it would break down below $24,000 and slump below $20,200. On Friday, March 17, 2023, the haven cryptocurrency closed at $27,520.
How did Bitcoin gain over $5,500 from its March 10 low?
The government cracked down on cryptocurrency indirectly. It shut down Signature Bank, which openly supported crypto transactions. This failed to hurt Bitcoin. The opposite effect happened.
“Big whales” have an asymmetrical influence on crypto prices. The low liquidity in the market may have fueled a mini-rally in only a day. Massive activities like Binance converting $1 billion of BUSD to bitcoin could have an impact. Coindesk reported that big players in the illiquid market will increase buying pressure in the market.
Crypto investors should notice that the positive correlation between stocks and crypto is breaking down. Previously, the Federal Reserve’s hawkish tone about raising interest rates would hurt stocks. This would in turn hurt the prices of Bitcoin or Ethereum.
Today, cryptos like Gala, Polkadot, and Dogecoin are gaining the most while the stock exchange falls.
After many platforms and stablecoins busted in the last year, crypto investors are wary. Those who are still invested in this sector may hedge against stock markets and the banking sector.
