Bitcoin Price Set For $30K As UBS-Credit Suisse Deal Fails To Contain Banking Crisis
Bitcoin price rises, while banks’ shares and bonds fell on Monday as UBS Group AG’s acquisition of Credit Suisse fails to calm investors’ fear, with the banking crisis deepening. UBS Group acquired the ailing competitor at a 60% discount for $3.25 billion, as part of the emergency ordinance and to prevent financial instability.
Despite the deal and joint effort by central banks including the U.S. Fed, ECB, BoE, and Swiss National Bank to boost US dollar liquidity in global markets, bank stocks are falling again.
UBS shares fell over 7% while Credit Suisse plunges over 60% on March 20. Shares of other banks including HSBC, ING Groep, Societe Generale, Deutsche Bank, Commerzbank, and BNP Paribas also fell sharply. The STOXX Banks index tracking stocks of 600 European banks fell nearly 3%.
“A week can be a very long time in financial markets. UBS acquiring Credit Suisse for 3 billion francs a week ago would have seemed like a terrific deal. Now the position is less clear,” said Johann Scholtz, an analyst at Morningstar.
Also Read: Binance Announces Arbitrum Listing, ARB Futures Trading Live On BitMEX
Bitcoin Price Rally To $30K Will Continue
Bitcoin price looks for another rally as the banking crisis deepens. The closure of Silvergate, Silicon Valley Bank, and Signature bank by regulators have caused instability in the global market. As a result, Bitcoin and Gold prices are rallying massively.
Bitcoin and Ethereum prices are currently trading above $28,000 and $1800, respectively. BTC price is up 4% in the last 24 hours, with 24-hour low and high of $27,196 and $28,527, respectively. Meanwhile, the ETH price is stable and trading sideways in the last 24 hours.
Popular analyst Michael van de Poppe predicts a decline in BTC price as traders will look to book profits near the resistance at $28.3K. Holding above $27,700 is important for the BTC price to hit $30K this week.
Crypto analysts Ali Martinez revealed that TD Sequential show a sell signal for Bitcoin in the daily chart. It anticipates a 1 to 4 candlesticks correction and may push BTC price below the $27,000 support, triggering a dip to $26,000-$25,300. Bitcoin must close above $28,200 to invalidate the sell signal and jump to $29,600 this week.
Also Read: How Bitcoin Will Breach $1 Million? Ex-Coinbase CTO Clarifies
The post Bitcoin Price Set For $30K As UBS-Credit Suisse Deal Fails To Contain Banking Crisis appeared first on CoinGape.
