Bitcoin is currently trading above the $22.4K mark, and investors are taking into account the recent issues faced by Silvergate Bank and anticipating positive economic news from China. Bitcoin and Ethereum began the week with relatively stable trading, with Bitcoin at $22,463 and Ethereum at $1,569.
Despite the troubles at Silvergate, the crypto market appears to have found a degree of stability, and focus has shifted towards the Chinese economy, which is expected to show signs of growth this week. This is an encouraging sign for the wider cryptocurrency industry, as it suggests that the global economy is recovering from the pandemic.
China, which lifted Covid-19 restrictions at the beginning of the year, is releasing its economic data, including figures on Balance of Trade, foreign exchange reserves, and inflation rates. March Zheng, the co-founder of Bizantine Capital, believes this is a positive development and may increase the demand for assets such as crypto. The resurgence of “animal spirits” in Asia could further strengthen the cryptocurrency market.
Despite recent difficulties, such as those faced by Silvergate Bank, market sentiment is relatively optimistic, and many analysts believe that any negative news has already been priced in. The Global Head of Research at Forex.com, Matt Weller, suggested that any downturn related to the Silvergate situation has already passed, and that Bitcoin could potentially retrace back to $20,000 or even $18,000 to test previous lows.
In other cryptocurrency news, the Ethereum community recently convened at ETHDenver, the most important annual gathering for smart contract and decentralized finance (DeFi) developers. This event highlighted the fact that Ethereum has a strong and committed community.
According to CoinDesk’s Chief Insights Columnist David Z. Morris, despite criticism of the event, the rough edges of ETHDenver serve as a positive indicator that a genuine community has formed around shared interests to build something from the ground up. This is the kind of community that will survive slow periods of growth in the cryptocurrency market.
