Bitcoin (BTC) fell just below $27,000 after the recent banking debacle failed to trigger the kind of price surge that has occurred in recent weeks among multiple US bank failures.
The largest cryptocurrency by market capitalization recently traded at around $26,950, down more than 3% over the past 24 hours. BTC was trading above $27,000 on Thursday morning before breaking below the threshold around 1pm ET. BTC has been trending downwards for most of the past week as investors look for new price triggers. Bitcoin fell below $27,000 for the first time since March on Wednesday, but recovered the threshold before falling again.
In an email to CoinDesk, Vineeth Bhuvanagiri, managing director of Emurgo Fintech, founder of the Cardano blockchain, said investors are still concerned about low liquidity, which is why “a seemingly small decline in prices It tends to have a big impact on the
Meanwhile, PacWest Bancorp’s (PACW) deposit outflow sent the Los Angeles-based bank’s share price down 22% on Thursday, but “did not spur strong demand for cryptocurrencies as it did this time,” said a foreign bank. said Edward Moya, senior market analyst at Forex Oanda.wrote on thursday Note.
“Some banks, like Western Alliance, are showing deposit growth and bank contagion concerns remain low,” Moya said.
Emurgo’s Bhubanagil suggested that major macro shocks such as “lack of resolution on default-causing debt ceilings” could shake Bitcoin’s price, but Bitcoin “seems to be in an accumulation stage, So I added that it means “the push is swallowed” Get up early. “
In an interview with CoinDesk, Greg Cipollaro, head of global research at bitcoin-focused investment firm NYDIG, compared market momentum to Bitcoin. The debt ceiling crisis of 2011“I feel a little bit of the same thing,” Cipollaro said.
“It’s a little calm before the storm right now,” he said. “When we finally get into negotiations, the cap will eventually be raised. There could be a lot of market volatility around that.
“Bitcoin as a non-government-issued store of value may be viewed as a viable investment option for those wishing to protect themselves from the machinations of politicians and monetary policy makers,” he said April 21. said in a memo published on .
ether (ethereumThe cryptocurrency, the second largest cryptocurrency by market capitalization, followed a similar trend, dropping more than 3.5% on Thursday to hover around $1,788. According to CoinDesk data, ETH fell below $1,800 for the first time since late April. His MATIC token on Layer 2 blockchain Polygon has dropped more than 4% of his, trading at around 0.84 cents.
of coin desk market index The CMI (CMI), which measures the performance of the entire cryptocurrency market, fell 3.7% on the day.
the stock market was mixed, the S&P 500 and the Dow Jones Industrial Average (DJIA) fell 0.1% and 0.6% respectively. Tech-heavy Nasdaq rose 0.1% on the day.
Correction (May 11, 2023, 21:10 UTC): Bitcoin fell below $27,000 for the first time since March on Wednesday.
