None of the major tokens are posting gains at this time, with Binance Coin (BNB) and Polkadot (DOT) leading losses of up to 3%.
The cryptocurrencies They start the month of May on the wrong foot. He Bitcoin It is trading below US$28,000 and falling 1.7% in the last 24 hours. For its part, Ethereum (ETH) fell 0.6% and was located in its support zone around US$1,800. In the rest of the market, widespread falls. None of the major tokens are posting gains at this time, with Binance Coin (BNB) and Polkadot (DOT) leading losses of up to 3%.
Edward Moya, senior market analyst at Oanda, noted that the rapid response to the First Republic Bank implosion showed that the banking sector is more resilient than the market expected. “It seems that the US banking system has a manual for dealing with the next banking crisis when it arises, which somewhat reduces interest in cryptocurrencies,” explained this expert.
This is demonstrated by the change of course in the price of cryptos. Digital assets built a good moment on the bad numbers of First Republic, in what seemed like a repeat of the episode experienced in March with the bankruptcies of Silicon Valley Bank, Signature Bank and Silvergate Bank, but finally it has been unable to break the important technical resistance that it presents in the US$30,000-31,000.
“Bitcoin has held below $30,000, which is a key resistance level, but hasn’t yet had to test any major support”says Joe DiPasquale, CEO of BitBull Capital. “Attempts to break above $30,000 this week have failed to make a higher high, which should worry bulls. Overall, we wouldn’t be surprised to see the market leader testing $25,000 in the coming days, especially after the Fed decision,” he added.
What is expected this week
In this sense, the Federal Reserve (Fed) The meeting of the Federal Open Market Committee (FOMC) began this Tuesday and will give a decision tomorrow on where the official interest rates will go. Right now, the market pretty much takes it for granted that it will go up 25 basis points to the 500-525 basis point range.
“Traders understand that most of these (bank) failures are due to ‘ultra-high’ interest rates, but the interesting thing is that the failure of this bank will not change anything for the Federal Reserve, as it will continue with its normal plans and another rise in interest rates of 25 basis points is expected”, explained Naeem Aslam, investment director of Zaye Capital Markets, while stressing that “the important thing now is to see what its future trajectory will be like”.
Source: Ambito
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