Bitcoin is not spooked by banking chaos
Market picture
Bitcoin was approaching $26.5K on Tuesday but almost nullified the rise by the end of the day. On Wednesday, we still see a tug-of-war near $25.0K. Bitcoin got a pull on a wave of fears around the banking system - markets shifted sharply to the problems at Credit Suisse today, causing a sell-off in the euro and a jump in gold and silver.
Moving away from the news backdrop, Bitcoin prices are returning under the 200-week average, failing to go immediately higher. Technically, an important signal of a return to a long-term bullish trend would be a consolidation above $25K at the end of the week.
Nevertheless, keeping the price above 20K and the 200-day average looks like a sufficient condition that Bitcoin is not ready to decline sharply further and remains interesting for buying on declines. Not least because of large investors' distrust of the banking system.
News background
The Chicago Mercantile Exchange (CME Group) has launched "event-based contracts" for bitcoin futures. The deal is capped at $20 and allows betting on an event at the end of each trading session. The new product will give the platform's clients "a cheaper way to trade BTC", the CME stressed.
Meta has announced discontinuing support for non-exchangeable tokens (NFT) on its Facebook and Instagram social media platforms. These options were added just ten months ago.
Cryptocurrency conglomerate Digital Currency Group (DCG) reported that big banks are not refusing to work with cryptocurrency companies, although they may impose restrictions.
Author
Alexander Kuptsikevich, a senior market analyst at FxPro, has been with the company since its foundation. From time to time, he gives commentaries on radio and television. He publishes in major economic and socio-political media.
