US tries to control banking crisis while Bitcoin awaits both Fed and ECB
Last Updated on 6 November 2023 by CryptoTips.eu
The United States seems to be jumping from one troubled bank to another while Europe seems to have its banking affairs in order. Bitcoin, just like the stock markets, awaits Fed news this Wednesday (and ECB news on Thursday) while crypto analysts turn more negative as the $30,000 level appears too difficult to pass.
JP Morgan
The American investment bank JP Morgan was already the largest bank in the United States, and it was only thanks to an intervention by the US government that it was allowed to take over the 84 branches of the ailing First Republic bank, because now JP Morgan is really ‘too big to fail’.
Hopefully, this will put an end to yet another bank collapse for the Americans. After Silicon Valley Bank and Signature Bank, First Republic Bank will become the third bank to collapse in 2023 on US soil. Charles Schwab, another banking giant, seems to be a possible next victim. In Europe, only Credit Suisse has gotten into trouble, and was taken over by rival UBS.
Bitcoin in wait mode
This weekend, we let Katie Stockton, founder of analyst firm Fairlead Strategies, give her analysis of the Bitcoin price. Katie was negative in the short term but positive in the long to medium term, especially as this week’s Fed and ECB interest rate decisions will steer the direction of both equity and crypto markets.
Bitcoin has remained below $30,000, which is a key resistance level, but has not had to test any major supports just yet.
Joe DiPasquale, CEO of BitBull Capital said
For now, the market is expecting a 25 basis point rate hike in the Federal Open Market Committee meeting this week, but we are likely to see price swings following the Fed’s post-release commentary.
The attempts to breach $30,000 this week have failed to make a higher high, which should be concerning for the bulls. In general, we would not be surprised to see the market leader testing $25,000 in the coming days, particularly after the FOMC.
In other words, market analysts seem to be agreeing with Katie, especially after Bitcoin failed to take the $30,000 level again on Sunday. At the time of writing, Bitcoin trades at $28,000.
mmaxer / Depositphotos.com
