Wednesday morning, Bitcoin began with a decline, which later turned into a correction. At the time of writing, BTC is balancing at $24,606. The day before, the price of the coin broke through the highs of February and tested the maximum levels for 9 months, getting close to the $26,500 mark. At the same time, by the end of Monday, bitcoin grew by more than 12% (+$ 2,000).
The key reason for the sharp rise of the first cryptocurrency at the beginning of the week was positive news from America. So, on the eve it became known that the US authorities took measures to rescue depositors of the bursting cryptocurrency bank Signature Bank. The country's leadership announced that the owners of deposits will have access to their funds, which were stored in the bank.
Earlier, a message appeared in the media about the start of the procedure for the liquidation of Signature Bank. Investors immediately began to draw analogies with the collapse of the FTX exchange, which provoked the last tangible drop in the market.
At the end of last week, the first cryptocurrency collapsed by 4.5% and closed the seven-day period at $ 21,400.
The main factor of pressure on the cryptocurrency market yesterday was a spectacular decline in key indicators of the US stock market. So, following the results of Friday alone, The Dow Jones Industrial Average index fell by 1.07%, falling to a 3-month low, the S&P 500 stock index sank by 1.45%, and the NASDAQ Composite lost 1.76%.
Additional reasons for traders' anxiety last week turned out to be several fundamental and technical factors at once. Thus, an important trigger that brought the world of virtual coins out of balance was the intentions of the US Federal Reserve to further tighten monetary policy. Last Wednesday, this was stated by the leader of the Central Bank Jerome Powell.
In addition, crypto enthusiasts are greatly concerned about the plan of American President Joe Biden, which was announced the day before, to make changes to the taxation of digital currencies.
Altcoin Market
Ethereum, Bitcoin's main competitor, started Wednesday with a sideways movement. At the time of writing, the coin is trading at $1,643. Over the past week, altcoin lost 1%, ending it at $1,550.
As for cryptocurrencies from the top 10 by capitalization, over the past day, all coins, with the exception of a few stablecoins, were traded in the green zone. At the same time, the best results for the past 24 hours were recorded at Dogecoin (+4.29%).
As part of the past week, among the cryptocurrencies from the strongest ten, the XRP coin (-0.62%) topped the drop list, and the growth list was led by the BTC (+12.21%).
According to the world's largest aggregator of data on virtual assets CoinGecko, over the past day among the top 100 most capitalized digital assets, the first place in the list of rise went to the Conflux token (+31.98%), and in the list of fall – Maker (-3.16%).
According to the results of the past week, the Stacks digital asset (+58.26%) showed the best results among the top hundred of the strongest digital assets, and Huobi (-13.37%) showed the worst results.
According to CoinGecko, as of Wednesday evening, the total market capitalization of cryptocurrencies is above the important key level of $1 trillion and is $1.039 trillion. Over the past day, this indicator has fallen by 1.44%.
Since reaching its peak above $3 trillion in 2021, the capitalization of the cryptocurrency market has lost over $2 trillion.
Traditionally, March is considered not a very successful month for Bitcoin. So, since 2010, this month bitcoin has fallen in price in eight cases, and increased – only in four. At the same time, the average decline of the coin over the past 12 years was 12%, and the average growth was 15%.
In the first case, Bitcoin can close March 2023 at $19,700, and in the second – about $26,900. By the way, 2021 and 2022 were successful years for the first cryptocurrency in March: the average increase over these two years was 20%.
Recall that last February, the first cryptocurrency ended with an increase of 0.9% to $ 23,200.
By the end of 2022, the value of Bitcoin has fallen by 64%. At the same time, during the first month of the coming year, the coin gained almost 40% in price, thanks to which January became the best month for it since October 2021.
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