Polygon Forecast (MATIC) after the Bank Collapse

Audy Castañeda
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<strong>Polygon Forecast (MATIC) after the Bank Collapse</strong>

After the bank collapse in the US, the MATIC course was able to recover extremely quickly.

The price of Polygon (MATIC) has once again experienced a strong increase in recent days. The MATIC course continues its positive development from the beginning of 2023.

The Polygon course (MATIC) knew how to recover very well in the last days of the collapse that triggered the banking crisis in the US The price fell from a value of $1.15 to $0.95. However, the price was able to recover relatively quickly from this drop.

In the days after the crash, the MATIC price was able to recover very strongly and rose again to a value above the pre-crash price. After just three days, the price rose back to the $1.15 mark. The price then rose again to a value of over $1.20.

Why Was the MATIC Course Able to Recover So Quickly?

The recovery of the course in the last few days gives hope to a very positive prognosis for the Polygon (MATIC). But what triggered the rapid recovery?

The recovery is mainly because the bank’s fall strengthened the cryptocurrency market. The Bitcoin price in particular has experienced a huge bullish momentum. Now, as a result, altcoins are also rising more strongly. Also, MATIC has been one of the most popular cryptocurrencies in recent months.

The price of the Polygon (MATIC) has risen considerably recently, and the market trend is upward. Therefore, the MATIC forecast is likely to be positive for the coming weeks.

It also depends on whether the current positive trend of the Bitcoin price continues. The recovery of the mark depends mainly on the development of the price of Bitcoin, which currently supports the market even more than before.

This is mainly because many users invest their assets in Bitcoin after the bank collapse. This could also result in more money being available to invest in altcoins such as MATIC.

How High Can the MATIC Course Go up?

The Polygon (MATIC) price could now benefit from the momentum of the crypto market, and rally strongly again. If the price of Bitcoin continues to rise, the price of MATIC could rise sharply as well. Since Polygon is currently very popular as a network, and large companies are investing a lot of money in the project, the MATIC course could benefit greatly.

If the price of Bitcoin continues to rise in the coming weeks, the price of MATIC should rise sharply as well. A move above $1.50 looks quite possible in the next few weeks. The $2 mark is probably still possible in 2023, but according to some experts, it will come too soon in the coming weeks. Therefore, a Polygon (MATIC) forecast of $1.40 to $1.55 is assumed in the next 6 to 8 weeks.

By Audy Castaneda

Ethereum: Will the Price Rise to $2,500?

Audy Castañeda
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<strong>Ethereum: Will the Price Rise to $2,500?</strong>

In the last few days, the Ethereum course first had to deal with a massive drop, but it was able to recover very well after these losses.

The Ethereum price increased tremendously as a result of the banking crisis. After a short-term drop below US$1,400, the price was recently able to rally back above US$1,600. The great bull run of the last few days is making Ethereum very strong again at the moment.

In the past few days, the Ethereum price fell from $1,520 to $1,380. The reason was the insolvency of the two big American banks, Silvergate and Silicon Valley Bank.

However, after this incident, the recovery began immediately. The price rallied very quickly above the $1,400 mark. After that, a strong rally began, which took the Ether price first above $1,500 and then above $1,600. The Ethereum course followed the Bitcoin course, which could also explode.

What is the Ethereum Forecast for the Next Weeks?

Due to the price increase of the last few days, investors expect a positive forecast for Ethereum in the coming weeks. The price of Ether could rise so high that a rise to $2,000 in the next 1-2 weeks no longer seems unlikely. The current momentum could be positive for the Ethereum forecast.

It must be taken into account that Bitcoin and Ethereum, as the largest cryptocurrencies, are benefiting from the collapse of the banks in the USA. The insolvency of Silicon Valley Bank, which was listed among the 15 financially strongest banks in the US, sent a tremor through the classic financial markets. Ethereum’s extremely fast recovery caused strong momentum.

How High Can the Ethereum Price Go?

The Ethereum price could continue to increase significantly in the coming weeks. That also largely depends on how central banks react to bank failures. The Fed recently announced that interest rates would rise further. Due to the banking crisis, they might reformulate their strategy and consider smaller interest rate increases, or even a suspension of interest rate increases.

In such a case, that should boost the crypto market. The Ethereum price could benefit so much that it could actually go as high as $2,000. However, a rate of $2,500 seems a bit high here. Because we are still in the bear market and well before the Bitcoin halving, which triggers a supply shock and leads to altcoin stimulation.

An Ethereum forecast of $1,800 to $2,100, over the next six to eight weeks, is then assumed.

To conclude, is it worth buying Ethereum over Bitcoin? In recent weeks, Ethereum has been able to perform slightly better than Bitcoin, which had a slight edge in bullish January. Bitcoin will likely remain the safest investment, while Ethereum may trigger stronger price jumps. Therefore, you should think carefully about which investment is most suitable for you.

By Audy Castaneda

Three Scenarios of How Things Could Continue in 2023

Audy Castañeda
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<strong>Three Scenarios of How Things Could Continue in 2023</strong>

These are three exemplary scenarios that could lead to a certain Bitcoin price at the end of the year, without considering technical chart factors, but rather the macro situation, monetary policy, regulation, and industry-specific factors.

Despite the price recovery since the beginning of the year, the uncertainty in the crypto market is enormous. The regulatory frenzy in the US and the liquidation of cryptocurrency-savvy banks like Silvergate, Silicon Valley Bank, and Signature are spooking investors.

 However, even aside from temporary bad news, many investors may wonder what scenarios would need to occur for the Bitcoin price to reach a certain level. Although it is completely impossible to predict this, theoretical scenarios can help to better understand the impact of certain factors.

Bitcoin Price at $10,000: Worst-Case Scenario

Inflation in the western industrial nations simply will not decrease. At the same time, the rising cost of living is putting pressure on private households. As a result, they continue to lower their savings rate and sell off liquid assets like cryptocurrencies. The US Federal Reserve and the European Central Bank are surprising markets with interest rate hikes that are not only well above expectations but will last through 2023 with no relief in prospect.

Bankruptcies and scandals in the cryptocurrency sector continue, and they destroy the already tarnished confidence in the cryptocurrency sector. New EU demands are emerging aimed at banning proof of work. It intends to ban or make it difficult for European companies to offer “climate-unfriendly” cryptocurrency services.

Bitcoin Price at $30,000: The Reference Scenario

Inflation in the western industrialized nations is falling slowly. There will be no more increases in energy costs or bottlenecks in the supply chain that weigh on the economic situation of private households. The labor market situation remains stable. However, there is a small technical recession in the US and Europe. The main central banks make their last moderate rise in official interest rates (up to a final 5.75% in the US, and 4.5% in the eurozone) in autumn, and they give signs that there will be no further increases at the moment.

The US regulatory frenzy calms down over the summer, and an agreement is reached on higher regulatory requirements for the cryptocurrency sector. Companies have sufficient time for the gradual implementation of the increased requirements. There are no more scandals or major insolvencies in the cryptocurrency sector. Uncertainty among private and institutional investors remains, but there are no more outflows from the cryptocurrency sector.

Bitcoin Price at $60,000: The Best Possible Scenario

Inflation has been falling sharply since April, while economic indicators such as labor market data have weakened. American home prices are falling dangerously fast. Since the liquidation of Silicon Valley Bank, Silvergate and Signature, and other fairly small institutions, the Fed is hesitant to charge businesses and private households even higher interest rates.

A new impulse is coming from Asia. China is allowing its citizens to trade crypto through Hong Kong again and is holding back with restrictive statements. In addition, other rumors are circulating that two larger sovereign wealth funds plan to invest a small part in cryptocurrencies in the future.

By Audy Castaneda

After Banking Crashes, Are Stablecoins Really that Stable?

Audy Castañeda
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<strong>After Banking Crashes, Are Stablecoins Really that Stable?</strong>

The recent bank bankruptcies and decoupling of stablecoins raise questions about the stability of stablecoins and their reliance on the banking system. The lack of oversight and support for stablecoins has been a point of concern for many, and regulators have been prompted to take a closer look at stablecoins, as well as at the role of banks in their operation.

Banks are collapsing at an alarming rate, causing investors and stakeholders to question the stability of stablecoins. First, Silvergate failed, and now, SVB, which held $3.3 billion of Circle’s (the USDC issuer) funds, has been shut down and taken over by the FDIC.

This news caused the USDC peg to drop to a recent low of $0.869 on the Kraken exchange. A contagion soon followed, resulting in the decoupling of Dai (DAI), TrueUSD (TUSD), Frax (FRAX), and Pax Dollar (USDP). Consequently, the USDT price rose to a high of $1.06, suggesting a move of money toward the stronger stablecoin.

The SVB Collapse: A Wake-up Call for Stablecoins

The collapse of SVB, followed by the decoupling of these coins, has raised questions about the stability of stablecoins and their reliance on the banking system. Bank failures have caused widespread panic and confusion among investors, regulators, and the broader market. The collapse of SVB was particularly worrying, as it held a significant amount of Circle’s funds, which made up a large part of USDC’s supply.

The impact of the SVB drag on USDC stability was significant. USDC is designed to be pegged 1:1 to the US dollar, which means that for every USDC token issued, there must be an equivalent amount of US dollars in reserve. However, the collapse of SVB meant that $3.3bn of Circle funds, which were held by SVB, became inaccessible, putting USDC peg at risk.

Stablecoins in Crisis: The Need for Transparency and Regulation

The unpegging of USDC and other currencies that followed the collapse of SVB highlighted both their fragility and their reliance on the stability of the banking system.

Circle’s announcement that they would support any USDC stablecoin supply shortfalls is reassuring, but also raises questions about the extent of their responsibility, as well as about the measures they have in place to ensure USDC’s stability.

Stablecoin Regulation: A Call for Greater Oversight

The SVB collapse has also reignited the debate about the role of regulators in overseeing stablecoins. Treasury Secretary Janet Yellen mentioned her support for SVB but did not mention a bailout.

The lack of regulatory oversight and support for stablecoins has been a point of concern for many in the industry, and this incident may prompt regulators to take a closer look at stablecoin stability and the role of banks in its operation.

To conclude, the cryptocurrency industry and government regulators must work together to bring stability to the stablecoin market. Among the recommendations to make this possible, the following stand out: (a) strengthen regulatory supervision; (b) improve banking infrastructure; (c) develop contingency plans; (d) educate the public and investors; and (e) guarantee viability in the cryptocurrency market.

By Audy Castaneda

OP Bulls Intensify Dominance as Optimism Social Activity Increases

Audy Castañeda
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<strong>OP Bulls Intensify Dominance as Optimism Social Activity Increases</strong>

OP’s price jumped 22% and was followed by a number one spot in social interaction. Traders opened multiple long positions despite the slight circulation.

According to LunarCrush, Optimism [OP] ranked as the highest asset with the most social activity, as the market pushed towards bullish dominance.

It is worth mentioning that Optimism speeds up Ethereum transactions, and reduces their costs by settling them on another Blockchain using advanced data compression techniques.

The native layer two (L2) protocol token had previously experienced the red side of the decentralized money market. This led to a seven-day drop of 6.31%.

Now, its position on the social intelligence platform means that insights from millions of conversations put Optimism in a positive light. As a result, OP became one of the best performing cryptocurrencies in the last 24 hours. Currently, the token is up 22.02%.

OP Bulls Are in Pole Position

An assessment of the derivatives market showed that traders were taking advantage of the rally. First, data from Coinglass revealed that futures open interest (OI) was unusually high on almost all exchanges.

The OI represents the number of futures contracts held by market participants during a  trading day. With double-digit increases in this regard, it means that traders were solidly behind the OP price action.

The settlement data showed further evidence of merchant interest in the token. This was because OP barely recorded millions of dollar liquidations in the last few weeks. However, the market decline closed at $4.73 million on March 12. As expected, the shorts experienced the most.

Meanwhile, the OP net realized profit and loss fell to -1.55 million on March 11. However, the jump in price seemed to have helped with the recovery. The metric was 4480. The metric calculates the average gain or loss of an asset within a daily time period. Thus, OP spike holders, on average, had made substantial profits, and investor capitulation was not a close option.

Taking Short-Term Profits from Glory May be…

In addition, the increase in OP’s price resulted in an increase in its Z-score from market value to realized value (MVRV). The MVRV Z score is used to assess whether an asset is undervalued or overvalued. This metric also considers the difference between market capitalization and realized capitalization.

According to Santiment, the MVRV Z score was -21,066 at press time. Compared to the position between January and February, this status placed OP as undervalued.

However, as the market has been largely shaky of late, investors may want to tread cautiously. Lastly, OP’s one-day circulation dropped to 4.21 million, implying that the number of tokens traded did not trade a large number of wallets.

By Audy Castaneda

These Three Cryptocurrencies Can Go up again

Audy Castañeda
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These Three Cryptocurrencies Can Go up again

After a 2-day drop, the prices of Bitcoin, Ethereum, and co. are rising again in a massive way. What three cryptocurrencies could benefit in the coming weeks?

The collapse of Silvergate and Silicon Valley Banks has sent shock waves through the financial world. While the classical financial world is still bracing for the delayed impact, the cryptocurrency market appears to be over the crisis.

In the last few days, the prices of cryptocurrencies have experienced a significant drop. More than a week ago the possible bankruptcy of Silvergate Bank was known, which caused a sharp short-term collapse. As a result, prices stabilized for a few days, going downhill at the end of last week.

Bitcoin fell below the $20,000 mark after confirmation of the liquidation of Silvergate Bank and the bankruptcy of the largest Silicon Valley Bank. After only two days, the courses increased again. The Bitcoin price was even able to rally back above $22,000 overnight.

After the crash, prices appear to be rising again. Now there is the possibility to buy some coins at a low price. Below are the three cryptocurrencies that could rise strongly in the coming weeks.

Ethereum (ETH)

Ethereum seems to be gaining momentum in recent weeks. Of course, the Ether token also saw losses in the last 2-3 weeks. However, compared to Bitcoin and other Altcoins, Ethereum was able to perform better.

With the upcoming Shanghai update, a major piece of the puzzle for Ethereum 2.0 and an increase in scalability is nearing completion. Therefore, Ethereum could be one of the cryptocurrencies that could see strong increases in the coming weeks.

It is worth recalling that the Shanghai update is a network update designed to improve functionality and efficiency, which includes the Ethereum Improvement Proposal (EIP) 1559, intended to reduce fees for transactions in the Ethereum network.

Litecoin (LTC)

Unlike Ethereum, Litecoin (LTC) has struggled in recent weeks. Litecoin was hit hard by the drop and lost the most among the major cryptocurrencies.

No doubt this was also due to the fact that Litecoin has outperformed other cryptocurrencies in recent months. But this also gives the opportunity to buy Litecoin at a good time.

Monero (XMR)

Times of crisis repeatedly ensure that states consider particularly strong measures. This scope could be expanded in the coming months. Therefore, an anonymous option between coins like Monero could become more popular in these crises.

Monero is considered a pioneer of completely anonymous cryptocurrencies. Although Bitcoin can also be used anonymously, the Monero XMR token is a great alternative for investors. In the coming weeks, the token could become very popular, causing price increases.

By Audy Castaneda

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