Crypto wrap: Contrary to global sentiments, the crypto market is surging

The events of the past two weeks have been of particular interest to the crypto industry. First, the Center brought cryptocurrency under the Prevention of Money Laundering Act 2002 (PMLA). Later, three crypto-friendly banks in the United States fell one after another. These were Silvergate Bank, Silicon Valley Bank and Signature Bank. These events caused crypto prices to plummet. However, since Friday, the crypto market was bright.

The total crypto market capitalization fell from $922 billion on March 10 to $1.1 trillion on Friday, according to CoinMarketCap. Bitcoin price rose 33% in the past week and was trading at $26,421 on Friday. Ethereum is up 23% over the same period, trading at $1,728. Several other coins, like Polygon, Solana, Polkadot, Avalanche, and Tron, were up more than 20%.

“Bitcoin remains on solid footing, trading up to $26,000 in these trying times. It is Bitcoin Stacks (STX) layer 2 scaling solution that has seen a whopping 50% increase % over the week,” said crypto ecosystem Parth Chaturvedi. lead to the CoinSwitch crypto exchange.

He added that the fall of crypto-enabled banks could push crypto businesses to other countries like Switzerland and Hong Kong.

“Silvergate, SVB and Signature have been squeezed as access to US banking routes becomes more difficult for crypto players. This will impact long-term liquidity and could also lead to relocation of businesses to more crypto-friendly like Switzerland, Hong Kong, UK and Dubai,” he said.

During the week, disturbing information emerged from Credit Suisse Bank. Its Saudi Arabia-based investors have announced that they will no longer back the bank. The central bank of Switzerland later announced that it would provide $54 million to the bank for its support.

Some experts believe that despite the bull run, investors should remain cautious.

“As we head into the weekend, this could just be a bullish trap. It is prudent for investors to let the market cool down before making any investments,” said Alankar Saxena, CTO and co-founder of the crypto company Mudrex.

“While Credit Suisse received a $54 billion lifeline, the sector continues to experience infrastructure outages. crypto, with upcoming rate hikes next week being a key event to watch,” said Anurag Dixit, founder of crypto asset management firm Kunji.