Get Smarter About Crypto

₿itcoin reached $62,826. +4.15%

♢Ethereum reached $3,480. +1.63%

What we will talk about today...

📈🚀 Why did Bitcoin hit $64,000

🌐🌎 What El Salvador Says About Keeping Bitcoin

💰🔥 Why did Ether hit $3,500

Why did Bitcoin hit $64,000

Bitcoin has risen a lot and is close to $64,000, the highest in 2024. The crypto market is excited and wondering if Bitcoin will break its record high, especially before the supply halving event.

📈 More Demand, More Price:

Bitcoin’s recent rise, with a big 10% increase, is mostly because of the expectation for the supply halving. In the past, such events have led to higher prices. Also, the steady buying of new spot Bitcoin ETFs has helped Bitcoin’s price, which is now at $62,739.

🔍 More Opinions, More Debate: 

While the market enjoys the rise, some analysts warn about the risks of Bitcoin’s market. High funding rates in the market show a lot of leverage, which could lead to a big drop. However other analysts disagree and say that the Bitcoin price rise is strong.

Analyst Chris Newhouse explains the market, saying, “In my view, the recent rise has parts of a derivatives-driven move with some spot demand from record ETF buying.” This mix of factors, including a break above the $53,000 area, has boosted momentum, attracting both regular buyers and fast traders.

💡 More Strength, More Trend: 

Independent market analyst Nunya Bizniz gives a positive view, pointing to Bitcoin’s Relative Strength Index (RSI) going above 70. Comparing with previous market cycles, Bizniz says that BTC has usually kept rising for at least 335 days after the RSI goes above 70.

📉 More Highs, More Lows: 

Soon after reaching the $64,000 high, Bitcoin dropped to $58,700, maybe because of a big sell order at this level and the closing of leveraged positions. But after this drop, BTC recovered almost 5% of the loss, showing the strength of the crypto.

🚀 More Ahead, More Possibilities: 

Bitcoin is now less than 13% away from its record high, and with about 52 days until the supply halving, both small and big investors are looking at the $68,900 level, hoping it will be broken in the crypto story. As the market continues its exciting journey, the feelings of investors will surely shape the direction of this digital change. 🌐🌟

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What El Salvador Says About Keeping Bitcoin

President Nayib Bukele of El Salvador has said that the country will keep its Bitcoin holdings, saying that “At the end, 1 BTC = 1 BTC.” This comes when Bitcoin’s market value is high, and President Bukele says that selling now would make a profit of over 40%, showing the country’s loyalty to its BTC assets.

🇸🇻 Bitcoin as Money:

El Salvador surprised the world in September 2021 by making Bitcoin money along with the U.S. dollar. President Bukele used the social media platform X to talk about the country’s Bitcoin holdings.

📉📈 Market Changes and Profits:

President Bukele remembered the past when Bitcoin’s market price was low, and many articles said that El Salvador was losing money. Now, with Bitcoin’s market price high, the profit from selling is clear. But Bukele strongly says, “We won’t sell; at the end, 1 BTC = 1 BTC.”

👏 Support and Criticism:

The President’s strong support for Bitcoin got praise from many in the crypto community, with Kraken thanking him for his leading role in Bitcoin adoption. But not everyone agrees, with gold fan Peter Schiff against Bukele’s view, making the Salvadoran president reply strongly.

🏛️ Money Status and Future Plans:

El Salvador’s Vice President Félix Ulloa said that Bitcoin would stay as money under President Bukele’s new leadership. The government also plans to start Bitcoin-backed bonds in the first quarter of 2024 and build Bitcoin City, a planned tax-free crypto place.

🌐 International Monetary Fund’s View:

Even though the International Monetary Fund (IMF) keeps asking El Salvador to stop using Bitcoin as money, El Salvador keeps its commitment to the cryptocurrency. The IMF has worries about possible risks and costs, but President Bukele and his government keep using the independent digital asset.

As El Salvador stays strong in its crypto journey, the world community watches with interest, seeing the story of a country that wants to go through the crypto space on its own. 🚀💙

Why did Ether hit $3,500

Ether (ETH) prices dropped a lot, from $3,484 to $3,180, and people are talking about why. Some say it was because of too much leverage, but others say it was more complex.

📉 More Price, More Leverage: 

ETH rose a lot, 14%, between February 26 and 28, reaching a two-year high. At the same time, the cost of bullish leverage positions went up, making people worry about possible liquidations. But data analysis shows that not all Ether leverage demand is from risky bets.

🔄 More Reasons, More Leverage: 

Traders may use leverage for different reasons, such as getting cash or managing money. This can make funding rates go up temporarily, even for professional traders. These movements are normal when the market is hot and may last for days or weeks.

🔄 More Upgrades, More Optimism: 

Analysts say that more optimism for Ether is partly because of the upcoming Dencun hard fork on March 13. This upgrade, adding proto-danksharding, aims to lower layer-2 transaction fees. Ethereum’s biggest decentralized exchange, Uniswap, plans to launch a v4 version, expecting benefits from the Dencun upgrade.

💹 More Demand, More Growth:

The growth in Ethereum’s Total Value Locked (TVL) shows the rise of decentralized finance (DeFi) and other protocols. Investors’ interest in ETH matches the growing demand for the network’s decentralized applications, leading to more deposits.

📈 More Leverage, More Risk:

Looking at ETH derivatives markets shows changes in the funding rate, a key sign of leverage demand. While short-term changes are normal, long-term high leverage costs for longs may show too much bullishness. Right now, ETH longs have possible liquidation risks, but the rise’s link to too much leverage seems wrong, given the relatively calm sign until February 27.

🔍 More Volatility, More Liquidations: 

The sudden change on February 28 caused $102 million in ETH forced liquidations, with longs being $66 million. The drop increased the leverage of existing bullish positions, making people worry about the current funding rate, now at 0.06%.

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Stay tuned for more twists and turns in the crypto world & Happy Investing🚀💎