Bitcoin Price Prediction As BTC Spikes Up 2.2% – What Caused The Rally?

by Arthur · March 2, 2023

Bitcoin, the world’s leading cryptocurrency, has witnessed a sharp rise in price, by 2.2% in the past few days. The sudden spike has ignited the debate over Bitcoin’s future trajectory and prompted investors to reassess their positions.

In this article, we will examine the reasons behind the recent rally and analyze the potential implications for Bitcoin’s price in the coming days.

Table of Contents

Kraken is to reduce its use of Signature Bank, according to the Bloomberg report

Crypto exchange Kraken is scaling back its use of Signature Bank, a crypto-focused bank, for some of its critical financial operations, continuing a trend of crypto exchanges moving away from specific banks.

According to an email reviewed by Bloomberg, non-corporate Kraken clients will no longer be able to make deposits or withdrawals in dollars using Signature Bank. Deposits will be phased out on 15 March, followed by withdrawals on 30 March. Kraken cited Signature’s revisions as the reason for the change.

Kraken and Signature Bank did not respond to CoinDesk’s requests for confirmation or further comment. LedgerX, a crypto derivatives trading platform, also announced earlier this week that it would stop using Silvergate Bank to receive domestic wire transfers and switch to Signature Bank instead.

In December, Signature Bank announced its decision to reduce its exposure to the cryptocurrency business, but not eliminate it entirely.

Binance’s inconsistent claim of lost $1.8 billion USDC raises concerns

Binance, one of the world’s largest cryptocurrency exchanges, has been under scrutiny over inconsistent claims about the loss of USDC stablecoin worth $1.8 billion. The controversy has caused concern among investors, with many questioning the transparency and trustworthiness of the platform.

On August 17, 2022, Forbes reported that $1.78 billion in collateral allocated to support stablecoins, specifically b-USDC, which is a wrapped version of Circle’s USDC, was transferred from Binance wallets.

According to Forbes’ analysis of the blockchain data, which Binance has not disputed, $1.2 billion of that collateral was moved to trading firm Cumberland DRW, while the remaining amounts were sent to entities such as now-defunct hedge fund Alameda Research, Tron founder Justin Sun , and crypto infrastructure and service provider Amber Group.

Economic events to watch on Thursday

On Thursday 2 March there are several financial events to watch. The European Union will release its year-over-year CPI Flash Estimate, which is expected to be 8.3% for overall CPI and 5.3% for core CPI. In the US, the jobless claims report will be released at 1:30 p.m., with an expected number of 196,000 claims.

Reserve Bank of New Zealand Governor Orr will speak at an undetermined time, and FOMC member Waller will also speak at 9 p.m. These events may have an impact on the financial markets and should be closely monitored by investors.

Bitcoin price

As of now, Bitcoin’s price stands at $23,411 and its 24-hour trading volume is $24.9 billion. CoinMarketCap currently ranks Bitcoin first with a market cap of $451 billion. The total amount of BTC coins is 21,000,000, with a circulating supply of 19,305,393 BTC coins.

On the 4-hour chart, Bitcoin faced resistance at the crucial $23,750 level, which it struggled to break. As a result, BTC price saw a bearish correction and may fall towards the support level of $22,800. If this support level does not hold, the next support level can be found around $22,150.

**Bitcoin Price Chart – Source: Tradingview**

Despite the oversold condition of the BTC/USD pair, there is a possibility of a rebound if this condition persists. This could result in Bitcoin breaking through the $23,500 resistance level and potentially reaching a price of $24,250.

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Bitcoin Alternatives

For investors interested in buying Bitcoin, it may be worth exploring other options that offer greater short-term growth potential. Cryptonews has conducted an in-depth analysis of the top 15 cryptocurrencies that investors should consider for 2023. Click below to learn more.

^{Disclaimer: The Industry Talk section contains insights from crypto industry players and is not part of the editorial content of Cryptonews.com.}