investors rush to ‘HODL’ Bitcoin and Ethereum
After the much-publicized collapse of Silicon Valley Bank (SVB), accompanied by two other major banking institutions crashing and more exposed, it seems that investors are increasingly flocking to the alternative solution – cryptocurrencies such as Bitcoin (BTC) and Ethereum ( ETH).
As evidenced by the declining share of Bitcoin and Ethereum reserves on crypto exchanges, investors are seeking refuge in these digital assets for fear that the banking crisis may spread to crypto businesses, as noted by the blockchain and financial analysis platform Glass node in a weekly newsletter sent out on 13 March.
Specifically, the report stated that around “0.144% of all BTC and 0.325% of all ETH in circulation were withdrawn from currency reserves, demonstrating a similar pattern of self-storage response” to the collapse of crypto trading platform FTX.
On top of that, the platform’s team emphasized that these numbers spoke volumes about the growing level of investor confidence in crypto in recent weeks:
“On a USD basis, the past month saw over $1.8 billion in combined BTC and ETH value flow out of exchanges. This is not necessarily large in relative scale. But observing net exchange withdrawals, especially within the current hostile regulatory environment, speaks to a degree of investor confidence that is worth noting.”
Bitcoin price analysis
Meanwhile, Bitcoin has broken some of its recent gains, gaining just 0.17% on the day and at press time trading at $24,674 as it began to consolidate its weekly gains of 13.64% and 13.14% on the monthly chart.
Ethereum Price Analysis
At the same time, Ethereum has lost 1.17% in the last 24 hours, trading at the price of $1,672, but still up 8.97% compared to the previous seven days and 11.02% in the last month, according to the last information obtained in March. 16.
Whether crypto manages to retain investors’ interest remains to be seen and will largely depend on the development situation in the banking sector, in addition to developments directly related to the cryptocurrency market and the wider macroeconomic landscape.
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