• Cryptocurrency prices dropped on Friday due to contagion fears from Deutsche Bank’s problems, as well as the continuing concerns about US monetary policy.
• Bitcoin (BTC) was recently trading at around $27,450, down 2% over the last 24 hours and 16% up in March.
• Analysts for bitcoin mining equipment provider Blockware Solutions said that BTC resistance had been formed at $28,800.
Cryptocurrency Prices Drop Amid Contagion Fears
Cryptocurrency prices sank Friday as investors grappled with a new threat to the global banking system as well as continuing concerns about U.S. monetary policy. Bitcoin (BTC), the largest cryptocurrency by market capitalization, was recently changing hands at about $27,450, down more than 2% over the past 24 hours, according to CoinDesk data. BTC rose as high as about $28,300 earlier in the day and is up more than 16% in March.
Deutsche Bank Affects Market Sentiment
Shares of Deutsche Bank (DB) plunged 14% one point Friday before closing down 3%. Deutsche Bank’s problems come just days after UBS agreed to acquire its troubled rival Credit Suisse for $3.2 billion and less than three weeks after the failure of U.S.-based Silvergate, Silicon Valley and Signature banks.
BTC Resistance Formed at $28,800
In a newsletter Friday analysts for bitcoin mining equipment and hosting provider Blockware Solutions said that BTC’s resistance had formed at $28,800; this is approximately where it stood during a correction in the summer of 2021.
Unexpected Risks Can Lead to Volatility
The sudden surge in risk posed by Deutsche Bank highlights how unexpected events can push markets into volatility which can have an impact on crypto markets too – particularly when it affects global financial services giants such as this one.
It will be interesting to see if BTC’s resistance at $28K holds or if investors continue selling off their holdings due to renewed fears of contagion throughout financial systems globally following this latest news event involving Deutsche Bank