Bitcoin Price Prediction as Cathie Wood Slams FDIC, BTC Up 2%
Cathie Wood on Thursday wrote a long 7 Tweet threads to answer FDIC on provoking instability in banks in an approach to shutdown crypto business in US.
Bitcoin price prediction is here. As we know that crypto market is facing a bit of chaos between the surge and fall due to various economic and sentimental reasons. One of the news which came out early today is that FDIC is intervening with crypto transactions and businesses in the USA to put a stop on all.
Prominent investor and CEO of Ark Invest, Cathie Wood, has criticized the Federal Reserve's decision to raise interest rates despite warnings of an inverted yield curve and credit default swaps flashing warning signs. In her statement, she wrote that
“I believe regulators are using crypto as a scapegoat for their own lapses in oversight of traditional banking.”
Wood argues that many banks made erroneous assumptions about interest rates remaining low and deposits increasing, leading them to invest in "safe" long-term bonds earning 1-2%. At the commencement of the coronavirus epidemic, however, startups began depleting their deposit accounts, and uninsured money market funds began competing for higher-yielding accounts.
As deposits left the US banking system for the first time since the 1930s, the asset/liability duration mismatch became untenable, forcing some banks to sell long-term securities and recognize losses that depleted their equity accounts.
Wood believes that the primary culprit of this debacle was Fed policy and is baffled that banks and regulators could not convince the Fed that disaster loomed. She believes that the decentralized, transparent, auditable, and over-collateralized crypto asset ecosystem would have prevented this debacle and that crypto is a solution to the central points of failure and regulatory mistakes in the traditional financial system.
This news in contrast lifted up the sentiments and hence investors are now seeing more green candles. Although the Cathie Wood called for the whole crypto market but as we know Bitcoin covers 47% of total Crypto market and hence the news contributed in a positive manner to Bitcoin price prediction.
What Happened?
The Federal Deposit Insurance Corporation (FDIC) of the United States has reportedly ordered potential rescuers of some bankrupt U.S. banks not to support any crypto services.
The Federal Deposit Insurance Corporation (FDIC) has encouraged institutions interested in acquiring insolvent US lenders such as Silicon Valley Bank (SVB) and Signature Bank to make offers by March 17.
Bitcoin Price Prediction
At the time of writing, the price of Bitcoin is $24,830.44 USD, with a 24-hour trading volume of $40,518,990,656 USD. Bitcoin has fallen by 0.46% in the previous 24 hours. BTC is now ranked first on CoinMarketCap, with a market cap of $479,701,410,261 USD. It has a total quantity of 21,000,000 BTC coins and a circulating supply of 19,319,087 BTC coins.
Source: CoinMarketCap
Bitcoin (BTC) surged back over $25,000 in today's session as market volatility abated and the Swiss National Bank acted to prevent Credit Suisse from collapsing.
After a low of $23,964.91 on Wednesday, BTC/USD rebounded to an intraday high of $25,240.62. As a result of the move, bitcoin has once again broken over a critical resistance level around $25,050.
Source: TradingView
BTC is presently trading 15% higher than it was last week, with the 14-day relative strength indicator (RSI) reaching its highest level since February 20. The index is now trading at 62.54, which is just below a resistance level of 65.00.
This limit remains the major impediment to bitcoin bulls returning to a recent high of over $26,000.
Bitcoin Onchain Analysis
Onchain analysis tells a different story for Bitcoin. "Realized capitalization" is a metric for how well an SoV is working with bitcoin. Unlike traditional market caps, this option takes into account the latest transfer price of each bitcoin rather than the current market price.
According to CryptoQuant statistics, bitcoin now has a total worth of around $380 billion, down from a peak of $460 billion. Nonetheless, this is four times more than in December 2017, when bitcoin was priced roughly where it is now. As a result, money has flowed into the network in order to store value.
Source: CryptoQuant
Not only that, but bitcoin users are retaining the commodity for longer and longer periods of time. Notwithstanding the reduction in prices since late 2021, the percentage of supply that has been kept for lengthy durations reached all-time highs only last week. According to Glassnode statistics as of March 7:
-
% Supply Held for 1+ Years: 67.7%
-
% Supply Held for 2+ Years: 51.4%
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% Supply Held for 3+ Years: 39.2%
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% Supply Held for 5+ Years: 28.3%
These data also suggest that Bitcoin could be stronger this month as many events are driving the price positively. The Bitcoin price prediction will be successful if fundamentally no bigger event (Positive or Negative) alters the prices.
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