Crypto Week Ahead: Despite Bitcoin’s Bull Run, Investors Should Remain Cautious

Over the past seven days, Bitcoin (BTC) price achieved a high of $29,136.80.

Despite Binance, one of the world's largest crypto companies, facing a US CFTC lawsuit, Bitcoin (BTC) and other coins managed to remain afloat over the past week. As a new week of trading begins, here are certain factors and events that can help influence investors’ calls in the coming days.

Before we proceed further, readers should note that the overall crypto market and coin prices are extremely volatile in nature. There are no foolproof methods to ascertain how cryptocurrencies are expected to behave in the future. This article is aimed at helping investors stay on top of the current market scenario and the biggest events that have already taken place as well as some upcoming occurrences that are worth noting. Investors are advised to do their own research before taking any call. 

Crypto Prices Over The Past Week

Last Monday (March 27), the overall crypto market cap stood at $1.16 trillion. Bitcoin (BTC) price stood at around $27,900, Ethereum (ETH) price stood at around $1,760. 

A week later, the overall market cap managed to remain at $1.16 trillion, as per CoinMarketCap data. 

DeFi's total volume stands at $3.67 billion, at 10.88 percent of the total market 24-hour volume. In case of stablecoins, the overall volume stands at $29.46 billion, at 87.35 percent of the total 24-hour market volume.

BTC dominance, at the time of writing, stands at 46.23 percent.

Over the past seven days, Bitcoin achieved a high of $29,136.80 (on March 30) and a low of $26,716.33 (March 27), showcasing a relatively stable movement. 

Ethereum, on the other hand, saw a high of $1,840.68 (March 31) and a low of $1,698.55 (March 27), showing a stable movement as well.

Crypto Events To Note

Despite Binance’s KYC rumours and eventual US CFTC lawsuit last week, Bitcoin and other leading cryptocurrencies managed to remain stable in the following days, beating industry expectations of a slump. This just goes on to show how incredibly unpredictable the market can truly be. 

However, the collapse of Silvergate’s SEN instant transfer network as well as Signature’s Signet network in March can still show its claws, affecting the liquidity risk of overall cryptos. 

Even though BTC managed to reach the $29,000 mark last week, investors are still advised to research well and invest cautiously, given chances of a fallout effect of the banks’ closures. 

A couple of good news, however, can reinstill investors’ confidence. Firstly, low-cost Argentine airlines, Flybondi, announced the issuing of tickets as non-fungible tokens (NFTs), renewing interest in the sector once again. Furthermore, UNICEF is exploring the development of a DAO to help enable equitable distribution of power and communication in global digital public goods market. 

The US government is set to release its latest employment and productivity data this week. Since US market movements usually have a direct impact on crypto prices, investors are advised to be on the lookout. 

What Crypto Exchanges Are Saying About Current Market Scenario

Mudrex co-founder and CEO Edul Patel told ABP Live, “Despite Bitcoin's brief climb above the $28,500 resistance level during the weekend, it was unable to sustain this position and has since undergone a correction. Presently, it is trading below the $28,000 level, with the next major support being situated at the $27,500 level. If this level is breached, it could trigger a fresh decline towards $27,000. On the other hand, the resistance level currently stands at $28,100. With fresh productivity and employment data in the US to be released, there may be some volatility in the market this week.”

WazirX Vice President Rajagopal Menon offered his take, “Bitcoin briefly dropped below $26,677 before rebounding and reaching above $29,000 after the US Commodity Futures Trading Commission (CFTC) sued Binance for allegedly offering futures and derivatives products to US residents without registration. Despite this, Bitcoin traded above $27,000 for most of the week, rising 1.3 percent during the week and 26.1 percent during March. Over 74 percent of all Bitcoin supply was in profit as of March 29, suggesting that investors may be looking to sell some of their holdings to take profits.” 

Disclaimer: Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Cryptocurrency is not a legal tender and is subject to market risks. Readers are advised to seek expert advice and read offer document(s) along with related important literature on the subject carefully before making any kind of investment whatsoever. Cryptocurrency market predictions are speculative and any investment made shall be at the sole cost and risk of the readers.