Paxful Founder Says The Bitcoin Pump To $26,000 Is Weak

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Bitcoin soared this week, hitting a nine-month high above $26,000 despite the banking crisis in the United States and the latest inflation data. However, Ray Youssef, the founder of Paxful, remains skeptical about the bullish trend. In a tweet on March 15, he said that BTC’s recent phase was “weak”.

Bitcoin Surge Amid Bank Crash

Much of bitcoin’s price trouble this past week stemmed from the uncertainty surrounding the bust of some of the crypto industry’s biggest banking partners.

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Silvergate filed for voluntary liquidation while Signature Bank was closed. Silicon Valley Bank (SVB) experienced a bank run and was placed under receivership by California regulators.

Banking stocks plummeted in response to the crisis, but crypto assets remain relatively stable. Since Friday, the BTC price is up almost 29%, reaching over $26,000 on March 14.

Bitcoin price on March 15.  Source: BTCUSDT on Binance, TradingView
Bitcoin price on March 15. Source: BTCUSDT on Binance, TradingView
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Although bitcoin is relatively high, Youssef feels that the upward momentum is weak as there is little trading volume at the pump. Trading volume is a measure of participation. Traders use this indicator to measure participation and interest.

Based on this observation, he advises traders to wait for the cool-off before taking and loading their profits.

Busting Inflation and Binance’s Crypto-Shopping Spree

The price increase coincided with news that inflation in the United States is slowly falling in line with economists’ expectations.

Tuesday’s consumer price index (CPI) reading from the Bureau of Labor Statistics showed year-over-year inflation had dropped to 6% in February.

Signs of declining inflation may indicate that the Federal Reserve (Fed) will hold off on raising interest rates in the coming months.

The central bank has been raising interest rates over the past year to combat rising inflation after months of quantitative easing in 2020.

Earlier this week, Binance, the world’s largest crypto exchange by number of customers, said it would convert its $1 billion industry recovery fund into bitcoin, among other coins.

Changpeng Zhao “CZ,” Binance CEO, Said This decision has been taken after the banking crisis in the United States and the “change to stablecoins”.

“Given the transition to stable coins and banks, Binance will convert the remaining $1 billion Industry Recovery Initiative funds, including BTC, BNB and ETH, from BSD to native crypto. Some fund movements will be on-chain. Transparency.

After the statement of CZ, data Has shown Bitcoin is being deposited into Binance.

Analyst James V. Streets Said The decision to buy coins, including BTC and Ethereum, is the reason for the increase in volatility which is further exacerbated by macro factors.

Bitcoin price is currently stable but below the $25,000 level.

Feature image from Canva, chart from TradingView

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