Bitcoin on course for over 7% weekly gain amid renewed banking woes

by James · April 28, 2023

Close-up of fingers holding golden Bitcoin cryptocurrency with fluctuating multicolored graphic background — coldsnowstorm/iStock not released via Getty Images

Bitcoin (BTC-USD) has been trying to regain $30,000, after a bout of market correction last week. The top cryptocurrency is on track to end the week more than 7% higher, while ether (ETH-USD) is set to one over 2% weekly gain.

Renewed banking problems backed up bitcoin (BTC-USD) this week as market players sought alternative assets pending First Republic Bank (FRC) imminent takeover by authorities.

“The crypto market is struggling for a new catalyst as the banking crisis appears to be ending with First Republic (FRC),” said Edward Moya, Senior Market Analyst, OANDA. “The Fed will protect the banks, and that should mean the recent trend of crypto strength on banking issues is coming to an end. Traders remain in wait-and-see mode over US crypto regulation.”

Bitcoin (BTC-USD) traded in the $27.07K-$29.99K range, but selling pressure kept the crypto below $30K. Trading below $2K throughout the week, Ether (ETH-USD) gave up the gains it saw following the network’s Shanghai upgrade, trading in the $1.79K-$1.96K range.

Total crypto market cap was $1.21T, down 0.9% over Thursday, CoinMarketCap data showed.

Regulatory concerns continued in the industry, with the “hostile” regulatory climate in the US pushing Binance.US to shelve its $1 billion deal to buy Voyager Digital’s ( OTCPK:VYGVQ ) assets.

Coinbase (COIN) filed a lawsuit to compel the SEC to respond with a “yes” or “no” to its July 2022 petition asking it to use its formal crypto industry rulemaking process.

Lawyers for disgraced Terraform Labs co-founder Do Hyeong Kwon sought dismissal of the SEC’s charges against him, arguing that TerraUSD (UST-USD) does not fall under its purview since it is a currency, not a security. Terraform’s other co-founder Daniel Shin was indicted by South Korea.

Meanwhile, Ark Invest’s Cathie Wood and 21Shares continue their pursuit of the first spot bitcoin (BTC-USD) ETF in the US and resubmitted an application to the SEC for the same. This marks the third submission after the first two were shot down.

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Bitcoin, Ether Prices

Bitcoin (BTC-USD) fell 0.7% to $29.41K at 6:15 PM ET and Ether (ETH-USD) was 0.9% lower to $1.90K.

Standard Chartered believes bitcoin (BTC-USD) could reach $100,000 by the end of 2024 as it believes the crypto winter is over. The potential upside could be driven by the recent banking crisis and a “gradually improving” macroeconomic backdrop for risky/alternative assets.