Cryptos don't give up; Bitcoin recovers $28,000

The resilience of the reigning cryptocurrency continues to surprise analysts. In the last month, Bitcoin increased its dominance over the rest of the cryptocurrencies, to represent almost half of the total capitalization of the crypto market, and managed to avoid collapsing in the midst of the banking crisis.

Craig Erlam, senior analyst at Oanda, highlighted that BTC is trading "quite independently of everything else," as has "often" been the case over the last month. "It remains close to its recent highs though and doesn't appear to be in any mood to give much back. That's despite the newsflow not appearing to be particularly in its favour unless you buy into it as a virtual safe haven," he explained.

"The current situation for Bitcoin is pretty positive, that's the reality on the ground," cryptocurrency analyst Glen Goodman pointed out to the 'First Mover' program of 'CoinDesk TV'. The expert also highlighted that the "injection of new money into the economy" as a backstop by a "panicking" Federal Reserve (Fed) to address the banking crisis boosted investor liquidity for certain stocks and cryptos.

"People are feeling brave enough now with this new liquidity to get back into what they consider big, profitable companies like Microsoft like Apple, and likewise, in the crypto market, they're going for what are considered the safer cryptos, which are Bitcoin and Ethereum," he added.

All in all, despite the last bullish quarter and the good outlook of some analysts, Bitcoin liquidity has fallen to 10-month lows. The collapse of crypto-friendly banks such as Silvergate Bank and Signature Bank has eliminated vital payment and credit channels for the sector, especially on U.S. exchanges, leading to greater price volatility and higher slippage fees (the difference between the expected price of a transaction and the price at which it is executed).

On the other hand, there are two pieces of news that are focusing the market's attention. First, the rumor that Interpol may have issued a red notice on Changpeng Zhao, founder and CEO of Binance, the world's largest cryptocurrency exchange. A red notice is a request to law enforcement agencies around the world to locate and provisionally detain a person pending extradition or surrender, or similar judicial action, although it is not considered an international arrest warrant. All in all, Zhao's name does not appear on the Interpol list, while both 'CZ' and Binance itself have dismissed this rumor.

Second, Dogecoin's (DOGE) surprising rally has also attracted attention. The dog-themed cryptomeme has gained more than 20% in the last day after the dog that gives the token its image appeared as Twitter's new logo. Two days earlier, Elon Musk, Twitter CEO and acknowledged DOGE enthusiast, asked a U.S. court to dismiss a $258 billion lawsuit filed against him accusing him of orchestrating a pyramid scheme to promote and inflate the price of the cryptomeme. While the tycoon's lawyers argued that posting "funny pictures" and "tweeting words of support" are not constitutive of fraud, this is not the first time Musk has received accusations of this type with DOGE in the equation.

In other market news, there have been notable gains for the major altcoins. Highlights include gains of nearly 3% for Polkadot (DOT) and more than 1% for Cardano (ADA) and Solana (SOL), while Ripple (XRP) drops more than 2%.