In this article, we will cover topics such as the recent rise of Bitcoin, which has surged 3% driven by factors such as strong Payroll and the bank crisis, Coinbase’s stance on regulatory uncertainties, Cash App profits in Bitcoin revenue, and the technical analysis of BTCUSD. If you are an investor interested in cryptocurrencies, keep reading to learn more about these topics and how they can affect your investments.
Bitcoin surges 3% with strong Payroll and bank crisis
Bitcoin had a 3% surge thanks to a strong Payroll and the bank crisis. Although the American bank crisis is a cause for concern, the main cryptocurrency is benefiting from it, boosting the entire crypto market together.
For example, Ethereum rose more than 6% today. There is notable interest in protection in a decentralized currency, which is even more evident when Gold, the main asset for this purpose, suffered a 2.4% drop on the same day.
In addition, the strong Payroll shows that the economy is resilient and advancing, despite monetary tightening. Bitcoin remains an attractive alternative for investors seeking protection against economic instability.
Coinbase remains committed to the American market
Coinbase remains committed to the American market, according to its CEO. During a first-quarter earnings call, Brian Armstrong expressed confidence that Congress will establish clear rules for the cryptocurrency sector, which will bring benefits to companies such as Coinbase that have dealt with regulatory uncertainties.
Unlike other cryptocurrency exchanges, Coinbase has no plans to move its operations outside of the United States. Armstrong stated that the company is “100% committed” to operating within the country long-term, making it clear that Coinbase plans to remain in the American market.
Cash App profits over $2 billion in Bitcoin revenue
Cash App, owned by Block, made over $2 billion in revenue with Bitcoin in the first quarter of 2023. The company, which also owns the Square business payment service, reported a total profit of over $931 million in its leading product, representing a 49% increase compared to the same period last year.
It is important to note that this value is lower than the company’s gross profit, which was $1.71 billion. According to the shareholder letter, the billion-dollar revenue in Bitcoin was driven by the increase in the amount of Bitcoin sold to customers.
Despite the drop in the Bitcoin market price compared to the same period in 2022, the company partially compensated for the sales decline with the increase in sales.
The technical analysis of Bitcoin (BTCUSD) shows that the cryptocurrency is still within the consolidation zone, with support at $27,000 and resistance at $31,000. Currently, the price is within a symmetrical triangle, a graphic figure that accumulates and decreases frequency until it breaks to one side, usually with a strong impulse. Although consolidation covers a large area, it is possible to analyze some patterns within this period.
It is important to remember that we are still within the consolidation zone, and any movement, no matter how intense, is highly likely to stop at support or resistance. Therefore, entering with the flow at the time of the breakout can be an effective operation, with targets at support and resistance points.