Bitcoin floats closer to $25k, but credit suisse entanglement could spoil the party further

at the time of writing, crypto market Traded at Cap $1.08 Trillion — 2.02% lower than the last day. In terms of volume, the market fell by 17.67% to $81.48 billion in the last 24-hours.

board leader, Bitcoin Was trading with a decline of $ 1.29 billion. It was at the close of $24,530 with a market cap of $473.89 billion. The trading volume in bitcoin has also decreased by 19.4% to around $42.46 billion.

In the early trading session, bitcoin saw volatility. The crypto touched a day’s high of $25,240.62 but also retraced to an intraday low of $23,964.91.

However, bitcoin dominance increased by 0.50% to 44.24% of the overall market.

Moreover, Ethereum which is the top trending crypto on Thursday was trading near $1,346, down 3.4%. Cryptocurrencies such as XRP, Cardano, Polygon and Dogecoin fell between 3-8%.

Credit Suisse rallied more than 32% and crossed the $2 mark on Thursday after the lender announced it will approach the Swiss National Bank (SNB) under a covered loan facility as well as a short-term liquidity facility. Will borrow up to CHF 50 billion. ,

CG said this borrowing is fully collateralized by high quality assets. In addition, the Swiss lender announced an offer by Credit Suisse International to repurchase certain Opco senior debt securities for up to approximately 3 billion Swiss francs in cash.

The additional liquidity is expected to support Credit Suisse’s core businesses and customers as Credit Suisse takes the necessary steps to create a bank that is simpler and more focused on customer needs.

on Wednesday, credit suisse stock hit a record low. There is an atmosphere of fear among investors about the banking and financial sector in the US after the collapse of lenders like Silicon Valley Bank and Signature Bank in the US last week. Shortly thereafter, Credit Suisse said in its 2022 annual report that it had identified “material weaknesses” in its internal controls over financial reporting.

At the same time investors sold credit suisse share price Its biggest backer has ruled out bailing out the troubled Swiss bank because a larger shareholding could lead to additional regulatory hurdles.

Over the past day, the disquiet surrounding Credit Suisse caused losses in European banks of around $60 billion.

On the crypto market, Shivam Thakral, CEO of BuyUcoin, India’s second longest-running digital asset exchange, said, “Bitcoin is hovering around the $25,000 mark as positive inflation data is cheering the investment community. Silvergate and The collapse of Silicon Valley banks. The focus has shifted to decentralized finance as a measure to protect user funds. However, the latest development at Credit Suisse could impact global markets and spoil the crypto party in the coming weeks. “

Earlier, on March 15, Thakral said that the UK government’s bailout of Silicon Valley Bank has created a positive sentiment within the investment community and could lead to an increase in buying activity. According to the latest data, US consumer inflation has slowed down but it is still at a high level which could prompt the Fed to continue with its accommodative stance. If macroeconomic factors remain favourable, we could very soon see bitcoin testing the $30,000 level.

However, with regard to american bankThe fallout and its impact on cryptocurrencies, President and Co-Founder of Biz2Credit, Ramit Arora said, “The crypto market will be severely impacted as two banks serving the crypto industry have been shut down. This will further depress the value of bitcoin. will fall. And we will see more people moving money from crypto to assets like gold and other precious commodities.”

US inflation came down to 6% in February 2023 as compared to the forecast of 6.4% in February 2023. The latest reading will be the lowest since September 2021. Better-than-expected inflation raises the prospect of a rate hike by the Federal Reserve, which should turn market sentiment positive, however, given the liquidity crunch at the above-mentioned financial institutions. Had a profound effect on the state of mind.

How the crypto markets, especially bitcoin, perform going forward will be keenly watched.

Disclaimer: The views and recommendations given above are of individual analysts or broking companies and not of Mint. We advise investors to do due diligence with certified experts before making any investment decision.