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Crypto Market Pretends to be a Safe Haven

Market picture

The crypto market is holding its total capitalisation above $1.27 trillion despite a frightening sell-off in equities overnight. Bitcoin and other major altcoins are once again attempting to play the role of safe haven.

There is also possible speculation that market turbulence in the week leading up to the FOMC meeting will force the regulator to soften its tone significantly, which is positive for crypto unaffected by the falling revenues from Google’s cloud business or similar stories.

On Wednesday, Bitcoin failed to break above $35K again. Still, we note a series of higher lows that brought the price closer to the upper bound of the consolidation range since Tuesday. We believe that BTCUSD remains in low-density territory, with key resistance levels of $38K or even $48K. However, reaching the upper boundary in the coming weeks won’t be easy.

Background news

The former head of BitMEX, Arthur Hayes, saw prospects for Bitcoin in “wartime”. According to him, if US government bonds do not provide safety for investors, then Bitcoin and gold will rise due to real fears of global inflation in times of war.

Bitcoin has entered a new period of turbulence, but it could end with either a rise or fall, according to Bitfinex. The current rally will last until April 2024, according to AltTab Capital.

Galaxy Digital estimates that within a year of the launch of spot bitcoin ETFs, total inflows into such funds will reach $14.4 billion. This should lead to a 74% increase in the BTC exchange rate to $59,000.

The Binance exchange asked the court to dismiss the US Commodity Futures Trading Commission’s (CFTC) lawsuit, saying the regulator was overstepping its duties and powers. “Congress did not designate the CFTC to be the world’s derivatives police,” Binance said in its appeal.

According to CoinDesk, payments giant Mastercard is considering a partnership with cryptocurrency wallets Ledger and Metamask. A payment card will help cryptocurrency wallet operators increase the number of active users.

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