Bitcoin, Ethereum, Crypto Market Surges, ETH Leads the Way After Shanghai Upgrade

The Bitcoin (BTC) price has increased substantially during the first three months of this year. The flagship cryptocurrency is trading at around $30,000 at the time of writing.

Although most industry participants are not sure whether we’re entering a bull market, it is clear that digital assets such as Ethereum (ETH) have been outperforming many other asset classes. This is partly due to the successful completion of the recent Shanghai upgrade to the Ethereum network.

In addition to positive momentum this year for Bitcoin and Ethereum, we have seen how the traditional banking sector is not as stable as many thought it would be. Following the struggles experienced by Silvergate Bank, Silicon Valley Bank, Credit Suisse, among other major financial institutions, it’s now evident to many industry professionals that a sensible allocation into alternative assets like Bitcoin might help hedge against uncertainty and unpredictability in capital markets.

However, the nascent crypto sector is still not supported by a clear and comprehensive regulatory framework. Financial institutions in the US are hesitant to work with loosely regulated crypto firms such as Binance.US. There’s also a general lack of confidence in the ability of crypto firms to operate in a compliant and transparent manner. Indeed, the spectacular collapse of FTX, Celsius, Three Arrows Capital, and other major digital asset platforms has led to increased regulatory scrutiny.

Last week, peer-to-peer Bitcoin marketplace Paxful abruptly shut down its platform, without giving customers adequate prior notice. Notably, Paxful closed down operations shortly after it ended support for Ethereum (ETH) on its marketplace (again, very abruptly). Interestingly, Paxful’s announcement regarding a complete shutdown came shortly after other P2P marketplaces such as LocalBitcoins also confirmed that they’re closing down. In addition to these platforms, the US division of Bittrex exchange revealed that it would be winding down its operations as well.

All of these abrupt announcements may have created unnecessary stress for consumers, which is something that many service providers do not realize (or care to). Despite these issues, the Bitcoin and crypto markets have shown that they can be fairly resilient during times of uncertainty and unprecedented inflation affecting consumers throughout the world.

More than likely, however, we will not be experiencing a real bull market until major socio-political conflicts such as the Russia-Ukraine crisis have ended in a positive manner. For now though, it’s interesting to witness new developments like Twitter recently partnering with eToro in order to provide users with more extensive trading and investing options via the leading microblogging platform.

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