Sunday saw a drop in major coins following the temporary suspension of Bitcoin withdrawals from cryptocurrency exchange Binance.
What Happened: Over the weekend, the Crypto Twitterverse was abuzz with anxiety, with several users expressing concerns over high transaction costs and an abundance of unprocessed payments, which they saw as an attack on Bitcoin. At the time of writing, the world crypto market capitalization was down by 1.48% compared to the previous day.
Friday saw a good day for U.S. stock markets, as regional bank shares surged and an impressive earnings announcement from Apple Inc (AAPL) propelled the market forward. The S&P 500 saw a significant increase of 1.85%, while the Nasdaq Composite reached new highs of 2.25%.
Analyst Notes: “Bitcoin plunged after an impressive jobs report pushed back Fed rate cut bets. Bitcoin was able to quickly recover those losses and is trading comfortably below the $30,000 level. Today’s price action for Bitcoin is very constructive for the bullish case as it appears to be holding onto gains despite a massive rebound with the regional banks. Regulatory clarity didn’t significantly improve, but efforts are being made and that should be positive for cryptos long-term. A bill is being proposed to give the New York Department of Financial Services more crypto authority,” said Edward Moya, senior market analyst at OANDA.
Crypto trader Michael Van De Poppe said the apex cryptocurrency is dropping to levels of $28,400 and suggested that in choppy conditions, trading Pepe (PEPE) may be better than BTC. He added that reclaiming $29,200 is the key to higher momentum, while $28,400 is a good option for a mid-range car.
Santiment’s latest data shows that Ethereum has now reached 20,000 active depositors, a major milestone since November 2021. This surge in activity is due to traders transferring their profits out of Pepe (PEPE) — a meme coin that has been garnering a lot of attention lately — to ETH.
“Exchange addresses interacting on the network is now at its highest level since November 2021. As expected, ETH is showing decoupling signs and on the cusp of breaking $2,000 once again,” Santiment said.
In a recent video update, acclaimed crypto analyst Jason Pizzino highlighted how Bitcoin and the stock market have shown resilience in the face of negative economic news. Despite a recession and bank collapses looming, Bitcoin’s momentum has been maintained.
“For nearly two months, Bitcoin has been trading over $25,000. With all of the bad news that we have seen in the markets, nothing is swaying Bitcoin from hitting $30,000, $40,000, maybe even $50,000 this year,” he said.