Bitcoin prices rallied, while bank stocks and bonds fell on Monday as UBS Group AG's takeover of Credit Suisse failed to calm investors' fears of a deepening banking crisis. UBS Group acquired the ailing company at a 60% discount for $3.25 billion, as part of an emergency ordinance and to avoid financial instability.
Despite agreements and joint efforts by central banks including the U.S. The Fed, the ECB, the BoE, and the Swiss National Bank to increase the liquidity of the US dollar in the global market, bank stocks still fell again.
UBS shares fell more than 7% while Credit Suisse plunged more than 60% on March 20. Shares in other banks including HSBC, ING Groep, Societe Generale, Deutsche Bank, Commerzbank and BNP Paribas also fell sharply. Shares tracking the STOXX Bank index of 600 European banks fell nearly 3%.
“A week can be a very long time in the financial markets. UBS acquiring Credit Suisse for 3 billion francs a week ago looks like a great deal. However, now the position is less clear", said Johann Scholtz, an analyst at Morningstar.
A number of market analysts expect bitcoin prices to continue their surge as the banking crisis deepens. The closure of Silvergate, Silicon Valley Bank and Signature bank by regulators has caused instability in global markets. As a result, the price of Bitcoin and Gold increased massively.
Bitcoin and Ethereum prices are currently trading above $28,000 and $1800, respectively. BTC price is up 4% in the last 24 hours, with a 24 hour low and high of $27,196 and $28,527 respectively. Meanwhile, ETH price is stable and traded sideways in the last 24 hours.
Popular analyst Michael van de Poppe predicts a bearish BTC price as traders will take profits near the resistance level at $28.3K. A hold above $27,700 is crucial for BTC price to reach $30K this week.
Crypto analyst Ali Martinez revealed that TD Sequential is showing a sell signal for Bitcoin in the daily chart. It expects a correction in the short term and may push BTC price below the $27,000 support, triggering a decline to $26,000-$25,300. Bitcoin must trade above $28,200 to continue its surge to $29,600 this week.
