Bitcoin, Ethereum, Dogecoin Rise As Silvergate Fears Ebb: Analyst Says Apex Crypto Will 'Peak' Unless Fed's Powell Pulls A Surprise

Major coins traded in the green on Monday evening as investors' attention turned toward Federal Reserve Chairman Jerome Powell's congressional testimony later this week amid easing worries over the crisis at Silvergate Capital Corp SI.

What Happened: Apex cryptocurrency Bitcoin BTC/USD was trading above $22,400, while Ethereum ETH/USD was exchanging hands at $1,570, up 0.43%. Dogecoin DOGE/USD was trading at $0.075, up 1.84% in the last 24 hours.

At the time of writing, the global crypto market capitalization rose 0.28% to $1.03 trillion.

U.S. equities traded mixed on Monday as Wall Street investors looked to maintain last week's volatility-driven gains while factoring in potential implications from a stream of upcoming economic news. The S&P 500 eked out a gain of 0.07% while the Nasdaq Composite pulled back, edging down 0.11%.

All eyes are now firmly fixed on Powell, who will testify to Congress on Tuesday morning before the Senate Banking Committee and the House Financial Services panel on Wednesday. 

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News Highlights: Kraken is undeterred in its ambition to launch a new crypto bank in the U.S. despite the Securities and Exchange Commission’s recent decision to ban its staking service. Kraken Support told a Twitter user that its crypto bank is still on its way and that its initial offering will be available to current Kraken clients in the U.S., with the potential for international expansion in the future.

Amazon is set to launch an NFT marketplace called either “Amazon NFT Marketplace” or “Amazon Digital Marketplace” on April 24, according to a report from Coingape. The marketplace will have 15 NFT collections available at the initial launch in the United States before expanding to other countries. The collections can be purchased from a user’s Amazon account and through a credit card.

Analyst Notes: “Bitcoin continues to drift lower ahead of a big macro and potentially regulatory week.  The first couple months of the year have already unraveled most macro plays as Bitcoin has clearly outperformed. Given the latest contagion risks, this time from Silvergate Capital, outflows (with ETPs) have been steadily increasing. Bitcoin appears rangebound a while longer, but eventually, prices should have a major move. It seems the more Wall Street positions itself for a major selloff with risky assets, the markets refuse to break. After this week, if we don’t get any surprises from Powell, we could potentially have a peak in rates firmly in place if the labor market shows signs of softening,” said Edward Moya, senior market analyst at OANDA.    

Michaël van de Poppe, founder and CEO of trading firm Eight, is seeing some generally uneventful price action on Bitcoin since the recent correction. He said on Monday that while the market is currently acting in support here, indices have already seen a bounce and look to be continuing to do so. Van de Poppe warns that if Bitcoin cannot hold above the $21,500 level, we could be in trouble. 

Boring price action on #Bitcoin since the correction, but still acting in support here.

Indices bounced already and seem to continue to do so.

Might have another sweep of the lows and then reverse up, losing $21.5K = trouble time. pic.twitter.com/6GyzaiqZ3U

— Michaël van de Poppe (@CryptoMichNL) March 6, 2023

Pseudonymous analyst Dave the Wav laid out a convincing case for Bitcoin pushing its all-time highs by the end of this year.

The four reasons, according to him, are:

- A less steep rate of appreciation 

- A duration of time that is equal to the length of the bear market allowing for natural appreciation

- That we are only at the midway point of the logarithmic growth curve channel and

- That BTC is already 25% of the way.

Trader Tone Vays believes Bitcoin (BTC) might be headed for a huge rally into six-figure territory, as high as $300,000. Vays shared his forecast with his 123,000 YouTube followers: if the next Bitcoin bull run follows the same pattern as previous cycles, BTC could soar between 792% and 1,238% from its current levels.

“So this is my projection. There’s two paths. We can hit this line [diagonal resistance] twice like we did in the last cycle. We can hit this line once near the end like we did in the prior cycle [2017]. If we hit it near the end, we’re going to go higher $300,000. If we hit it twice, we’re going to go lower $200,000.”

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