The crypto market - a place where fortunes are made and lost faster than you can say "Bitcoin". It's a wild west of digital currencies, where the only rules seem to be "buy low, sell high" and "hold on for dear life".

For many “classic” bankers It was a place where memes become currencies, and billionaires tweet their way to influencing the market.

But during last month’s bank scandals all over the world, those bankers turned to memes on the so-called crypto billionaires’ tweets.

Labeled as one of the most volatile markets, the previous weeks were a real test for the “emerging “market. With bitcoin price increasing over 40% since the fall of Silicon Valley Bank in early March, from $20 000 up to $28 000 overpassing gold gains. As Fear of bank defaults took over the market news and headlines recently, we saw a disconnection - that has been for couple of years - between crypto and other riskier assets such as the stock market.

So, what happened?

In times of economic uncertainty or instability, people may become concerned about the safety of their assets held in traditional financial institutions, such as banks. This can lead some individuals to look for alternative investment options that they perceive as being less vulnerable to economic shocks, the only difference this time that cryptocurrencies acted as a better store of value then gold.

Furthermore, some individuals may also be attracted to the decentralized nature of cryptocurrencies, which allows for greater control over one's assets without relying on traditional financial institutions. Additionally, some cryptocurrencies are designed to be more stable than others, with stablecoins being pegged to a fiat currency, and designed to maintain a stable value.

Additionally, some people may be turning to cryptocurrencies as a way to hedge against inflation and currency devaluation. With many governments around the world printing money to stimulate their economies, some investors may be concerned about the potential for currency devaluation and are turning to cryptocurrencies as a way to protect their purchasing power.

However, it's important to note that the cryptocurrency market is also subject to its own set of risks and volatility, and investing in cryptocurrencies carries its own set of risks and potential losses. It's important for individuals to carefully consider their investment decisions and to consult with financial professionals before making any significant investment decisions.

 

Influenced by the change of the blue bird to the brown dog "as a Twitter logo", the price of the cryptocurrency "DogeCoin" rose after the owner of Twitter, Elon Musk, chose the shape of a dog similar to the symbol of this cryptocurrency to be the new logo for the social network, after the billionaire faced lawsuits due to the promotion of this digital product.

Elon Musk's decision to change the blue bird, Twitter’s logo since its founding in 2006, “which many considered it as a funny joke”, led to a rise in the price of Dogecoin, by 21%, to nearly 10 cents, according to CoinMarketCap. .

The Tesla chief, who bought Twitter last October, has long used the platform for self-promotion and to post satirical content, sometimes in favor of Dogecoin, that was originally launched as a joke.

The billionaire raised previously the idea of using Dogecoin for online payments, which sparked speculation about his vision to make Twitter a multifunctional platform, similar to the Chinese WeChat that provides various services.

Changing the Twitter logo prompted many users to publish messages in which they used the dog's logo, especially from Elon Musk himself.

Musk posted to his 133 million followers a conversation that took place last year with one of the users, in which he promised to buy Twitter and use “Shiba Inu” as its logo.

Dogecoin was launched in 2013, in an initiative aimed at mocking two phenomena on the Internet:

Firstly, cryptocurrencies, which have multiplied in the wake of the Bitcoin boom, and secondly, the many combinations in which the image of the Shiba Inu dog has been used across the network.

Supported by a frantic buying spree due to an unexpected rise in value at the beginning of 2021, in addition to Elon Musk's multiple positive messages on Twitter, the price of "Dogecoin" rose to more than 70 cents in May 2021.

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The world of cryptocurrency has been in the spotlight recently, with Bitcoin and Ethereum prices experiencing significant fluctuations while Dogecoin spiked by 36% after Elon Musk's Twitter replaced the homepage bird icon with a Shiba Inu, the mascot for Dogecoin. Despite their original promise, cryptocurrencies haven't acted as hedges against inflation but instead have trended with broader indexes, prompting many to question their efficacy as an alternative investment.

Bitcoin, the world's largest cryptocurrency by market capitalization, has been hovering in the $28,000 range since the start of April. The digital asset's rally has slowed after it vaulted roughly 20% in March to record its best month since January when it gained 38.7%. Ethereum, on the other hand, retreated near $1,870 on Thursday afternoon from its Wednesday peak of $1,941, which marked the first time surpassing $1,900 in nine months and its highest level since mid-August.

However, Ethereum is gaining steam ahead of its Shanghai upgrade scheduled on April 12, which will complete its transition to proof-of-stake from a proof-of-work network. This upgrade is expected to significantly improve Ethereum's scalability, reduce its energy consumption and increase its transaction speed, making it more competitive with other cryptocurrencies.

Meanwhile, Dogecoin spiked nearly 36% on Monday to peak at 10.46 cents per token after Elon Musk's Twitter replaced the homepage bird icon with a Shiba Inu, the mascot for the Dogecoin cryptocurrency. However, DOGE coin slid back near 9.35 late Wednesday and traded around 7.7 cents prior to the logo update.

Despite the recent fluctuations in cryptocurrency prices, some experts believe that the altcoin market is ready for a big move. A crypto trader and analyst, for example, believes that the altcoin market could be breaking through a two-year falling wedge soon. In particular, DOGE has been doing particularly well, as the meme coin is up by more than 26%.

However, the collapse of several crypto banks, including Silvergate Capital, Silicon Valley Bank, and Signature Bank, has triggered widespread fears over the stability of the banking system. This has led to a Federal Reserve policy pivot, which could be coming sooner than expected, and has helped propel Bitcoin prices to their highest level since June 2022.

In March, crypto bank Silvergate Capital announced it would be winding down its operations and liquidating its assets. The Federal Deposit Insurance Corporation (FDIC) also announced that it was seizing Silicon Valley Bank, and New York state regulators shut down crypto bank Signature Bank. The selling pressure dropped the price of USD Coin below 87 cents.

The banking crisis dramatically shifted investor expectations for interest rates moving forward. It is unclear what the future holds for the stability of the banking system, but it is clear that cryptocurrency remains a risky and volatile investment.

In conclusion, the updates in the Bitcoin world lately include the fluctuation of cryptocurrency prices, particularly for Bitcoin and Ethereum, and the collapse of several crypto banks due to the downfall of FTX. It remains to be seen whether cryptocurrencies will become a mainstream investment option or remain a niche asset for tech-savvy investors.

 

by Hommam Al Asali