Bitcoin, Ethereum, Dogecoin slide on Credit Suisse concerns
Major coins traded in the red on Wednesday night as investors reacted to the possibility of a European banking crisis amid concerns about Credit Suisse Group CS.
|Cryptocurrency||Gains (+/-)||Price (admission at 9:30pm EST)|
What happened: Apex cryptocurrency Bitcoin BTC/USD experienced heavy volatility, falling to $23,946 before quickly regaining ground to trade at $24,346. It was still some way off the highs of the previous day when it rose above $26,000 in response to mildly upbeat February CPI inflation data.
Ethereum ETH/USD was down about 3.97% to below $1,700. Dogecoin DOGE/USD traded at $0.069, down 7.78% in the last 24 hours.
At the time of writing, the global cryptocurrency market capitalization was $1.06 trillion, down 3.74% in the last day.
US stocks traded mixed on Wednesday. The S&P 500 fell 0.7%, while the Nasdaq Composite made a slight recovery, rising 0.05%.
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News Highlights: Coinbase Global COIN on Wednesday said it is preparing to end support for six altcoins built on Ethereum: Rally RLY/USD, DFI money YFII/USD, Mirror MIR/USD, OMG network OMG/USD, Tissue network LOOM/USDand Augur REP/USD.
Euler Finance sent a message to the hackers who caused the platform to lose nearly $200 million in assets: “If 90% of the funds are not returned within 24 hours, tomorrow we will launch a $1 million reward for information leading to your arrest and return by all means.”
Analyst Notes: “Bitcoin weakened as chaos on Wall Street saw another banking crisis trigger another wave of panic selling of risky assets. Credit Suisse is a bigger story than SVB, and this has Wall Street extremely nervous. Bitcoin’s decline isn’t so bad when you consider how much pressure is hitting stocks, oil prices and the euro. The banking turmoil may eventually turn out to be quite bullish for Bitcoin, but for now, crypto weakness is justified,” said Edward Moyasenior market analyst at OANDA.
Michael van de Poppe, founder and CEO of Eight Trade, encouraged people to buy Bitcoin and have a long-term horizon. He said: “Banks are down 10% on the day as the dominoes start to fall apart. Saving a few banks does not mean the system is safe,” he said.
Charles Edwards, founder and CEO of the investment company Capriole is confident that Bitcoin is finally seeing a “Textbook perfect Bump & Run Reversal” bottom and he believes the target for Bitcoin is above $100,000.
Data analysis platform Sentiment said volatility was “up by a large margin” due to bank collapses, shifting news on interest rates and growing fears about the USDC.
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