Crypto This Week: Credit Suisse Crisis Makes Bitcoin Investors More Bullish – Here’s Why
What Happened in the Crypto Industry & NOBI During the Past Week?
Hi, NOBI’s! The ongoing crisis of major banks and the instability of the global economy have prompted investors to seek alternative assets like Bitcoin and Ethereum. In this article, we will cover some of the hottest news in the cryptoverse, including the impact of the Credit Suisse crisis on Bitcoin investors, the launch of Ethereum’s Shapella on the Goerli testnet, and Bitcoin’s impressive valuation that recently surpassed that of Visa. What else? We recap what’s been happening in the crypto industry during the past week!
1. Credit Suisse Crisis Boosts Bitcoin Investor Sentiment
The recent crisis at Credit Suisse has made Bitcoin investors more bullish as they seek alternative investments to protect themselves against the risks associated with traditional financial institutions. Cryptocurrencies such as Bitcoin are seen as potential hedges against inflation and financial instability. The rapid institutional adoption of crypto has also contributed to bullish sentiment among investors. However, as a volatile and speculative asset, investors need to conduct their own research and understand the risks before making investment decisions.
Investing in crypto can provide both hedging opportunities and potentially large returns, but there is no guarantee that such investments will always be profitable. As an investor, it is crucial to understand the risks associated with these assets and conduct thorough analyses before deciding to invest.
2. Ethereum Launches Shapella on Goerli Testnet, One Step Closer to ETH 2.0 Staking Activation
On Tuesday (14/03), the Shapella Ethereum upgrade was finally activated on the Goerli testnet and is set to be launched on the Ethereum mainnet next month. The upgrade includes several new features such as proof-of-stake consensus and shard chains, which are expected to improve transaction costs and energy dependence issues currently faced. The launch of the Ethereum 2.0 network scheduled for the end of 2021 is also expected to enhance network performance and expand capabilities to meet the increasing user demand.
The adoption of these more efficient new features maintains Ethereum’s position as one of the leading blockchains in the crypto industry. Ethereum Shapella itself is an important step in introducing new features to the main network and improving network performance, which is expected to address some of the issues currently faced by the Ethereum network. By improving transaction costs and energy dependence issues, Ethereum can pave the way for wider crypto adoption and maintain its position as one of the most popular blockchain platforms in the world.
3. Bitcoin Becomes World’s 12th Largest Asset by Valuation, Surpassing Visa
According to the latest report, Bitcoin has surpassed the market capitalization of payments giant Visa and become the 12th largest asset in the world. On Wednesday (15/03) afternoon, Bitcoin’s market valuation reached US$469.6 billion, which is US$18.31 billion more than Visa’s market valuation. However, the crypto asset’s market valuation is still below that of Meta (formerly Facebook), which is currently at US$499.66 billion. For Bitcoin to become the 11th largest asset by valuation in the world, its market capitalization needs to increase by US$30.06 billion, surpassing that of Meta.
4. This Investor Recommends Buying Bitcoin Amidst Giant Bank Collapse
Rich Dad Poor Dad author Robert Kiyosaki warned of a possible economic “crash landing” after two major banks were shut down by regulators in the US. Kiyosaki has long advocated for investing in gold, silver, and Bitcoin as a form of hedging against economic instability. He often refers to the US dollar as “fake money” as it is backed only by the full faith and credit of the US government. Previously, he predicted that “everything will crash” and advised buying more gold, silver, and Bitcoin.
Last week, the US Treasury Department, Federal Reserve Board, and Federal Deposit Insurance Corporation (FDIC) issued a joint statement stating that deposits in Silicon Valley Bank and Signature Bank will remain safe and no losses will be borne by taxpayers. The Federal Reserve Board also announced that it will provide additional funding to eligible depository institutions. Kiyosaki frequently warns of the possibility of a global recession, and he previously predicted that banks would experience bankruptcies.
5. Bitcoin Reaches 9-Month High, While ETH Breaks US$1,700!
According to the latest technical analysis, the price of Bitcoin has reached its highest level in the last 9 months and reached US$49,000 per coin. The analysis shows that Bitcoin is in a strong bullish trend and shows positive signals on technical indicators such as Moving Average Convergence Divergence (MACD) and Relative Strength Index (RSI). In addition, Bitcoin’s trading volume has also increased, indicating strong interest from institutional investors and large corporations.
On the other hand, the price of Ethereum has also experienced a significant increase and has surpassed the US$1,700 per coin level. Technical analysis signals that Ethereum is also in a strong bullish trend and has positive signals on technical indicators such as MACD and RSI. The demand from institutional investors and the increasing adoption among large corporations and organizations are also factors that have triggered the rise in the price of Ethereum. Analysts predict that the prices of Bitcoin and Ethereum will continue to rise in the short term, but investors still need to pay attention to their own risk management.
That wraps up for Crypto This Week. We’ll see you at the next one!