Global crypto market adds 7% led by Bitcoin’s 16%, Litecoin 6% surge – XRP struggles with a 2% rallye

  • As cracks widen in the traditional banking sector, Bitcoin and crypto show strength in seizing the moment.
  • Analysts at Morgan Stanley, however, believe that the recent surge could be a short squeeze instead of a fundamental shift.

The global crypto market continues to show strength gaining a strong 7.65% for the second consecutive day over the last week. The world’s largest cryptocurrency Bitcoin (BTC) has been leading the crypto market rally moving closer to its crucial resistance of $25,000.

As of press time, the Bitcoin (BTC) price is up by 12.78% trading at $24,925 and a market cap of $481 billion. Just when major banks in the United States have failed miserably to secure customers’ deposits, Bitcoin is showing greater investor participation.

Considering Satoshi Nakamoto’s vision for Bitcoin to break free from the traditional banking system, Bitcoin is delivering at the very right time.

On-chain data provider Santiment noted that Bitcoin makes a strong move, some traders have resolved to profit-taking. It noted:

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Bitcoin has gained ground on #altcoins on a big rebound day in the midst of the #SiliconValleyBank collapse & dollar falling. 21,524 $BTC have moved back to exchanges, its largest amount since Sep 13, 2023. Traders are profit taking while they can.

As Bitcoin stands up against the cracks in the traditional banking system, crypto enthusiasts have started stating that investors should “build their own bank” with Bitcoin. Popular crypto investor Michael Pompliano wrote:

Bitcoin is up almost 18% in the last 24 hours. Very clear signal from the market that a decentralized currency that allows you to become your own bank is valued in light of the recent developments.

Bitcoin’s Moment to Shine?

With the strong rally in Bitcoin and the broader crypto market, equity strategists at Morgan Stanley call it could be Bitcoin’s time to shine. In a client note, the strategists wrote:

Bitcoin was created as a way for anyone to hold value in a private digital wallet without needing an intermediary bank to hold the value for them or to facilitate transactions.

Our conclusion is that the Bitcoin network can operate without banks but that bitcoin’s price, and thus its purchasing power, has been and continues to be influenced by fiat central bank policy and needs banks to facilitate flows into crypto.

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Furthermore, the strategists also wrote that the recent rally could be a result of a short squeeze instead of any fundamental shift in the trading dynamic. “Some may convert but we think that it is too early to say that this is a long-lasting trend. Bitcoin generally continues to trade in line with fiat money supply growth (M2). Without bitcoin being used significantly as a means of payment, it will be hard for bitcoin to diverge from its risk asset trading nature,” the strategists concluded.

Along with Bitcoin, several altcoins have also extended support to the crypto rally. Ethereum is up by 7% for the second consecutive day while other altcoins like Cardano (ADA), Polygon (MATIC), Solana (SOL), Dogecoin (DOGE), and Polkadot (DOT) have gained 5-6% each.

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About Author

Bhushan is a FinTech enthusiast and holds a good flair for understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In his free time, he reads thriller fictions novels and sometimes explores his culinary skills.

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