Major coins traded in the red on Sunday night as investors continued to digest crypto-friendly banking Silvergate Capital’s (NYSE:SI) error.
| Cryptocurrency | Gains (+/-) | Price (8:30 PM EST) |
|---|---|---|
| Bitcoin | -0.45% | $22,464 |
| Ethereum | -0.98% | $1567 |
| Dogecoin | -1.65% | $0.074 |
What happened: Apex cryptocurrency Bitcoin (CRYPTO: BTC) traded below $23,000 after a volatile trading session.
Ethereum (CRYPTO: ETH) changed hands below $1,600. Dogecoin (CRYPTO: DOGE) was trading at $0.074, down 1.65% in the last 24 hours.
At the time of writing, the global crypto market capitalization was $1.03 trillion, down 0.68% in the last day.
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U.S. stocks rose on Friday as Treasury yields pulled back from recent peaks, with investors gauging the cumulative effects of the Federal Reserve’s rate hikes already implemented and taking in the central bank’s comments this week. The S&P 500 rose 1.61% while the Nasdaq Composite gained 1.97%.
See more: Best Crypto Day Trading Strategies
News Highlights: Binance in 2009 reportedly took a proactive approach to avoid potential legal action from US authorities, developing a plan that included the launch of a US entity. According to a Wall Street Journal report, a Binance executive warned colleagues in a private chat that a potential lawsuit from US regulators, which had signaled a coming crackdown on unregulated offshore crypto players, would be like “nuclear fallout” for the business.
Securities and Exchange Commission’s (SEC) approach to regulation through “enforcement” is not a “healthy way” to regulate an industry, according to Ripple CEO Brad Garlinghouse. In a March 3 Bloomberg interview, Garlinghouse warned that the SEC’s current methodology puts the U.S. at “serious risk” of falling behind in the future of blockchain and crypto innovation. He suggested that, given the dynamic and rapidly evolving nature of the industry, this approach to regulation could make the US less attractive to crypto firms and investors.
Analyst Notes: “Bitcoin plunges after a central banking provider for the crypto industry struggles to survive. The Silvergate battles have been in place all last year, but now liquidity risk has many crypto traders worried. The failure to submit the annual report on time raised concerns that they might not be able to survive. Several key crypto companies are ceasing to use Silvergate, and this brings back some contagion concerns, says Edward Moya, senior market analyst at OANDA.
Michael van de Poppefounder and managing director of the trading company Eight, warned that if Bitcoin fails to hold $21,300, altcoins could suffer significant losses. If the support level breaks, he believes that the price of Bitcoin could fall to almost $19,500, while altcoins could see a drop of up to 25%.
Van de Poppe nevertheless maintained a more optimistic view overall, suggesting that $40,000 could still appear “in a few months”.
“Moral of the story: Dollar-Cost Average and have the balls to buy when you don’t feel safe,” he advised in part of a subsequent post.
Crucial area for #Bitcoin is to hold the $21.3K range.
If you lose it, we will see another swipe towards $19.5Kish and #altcoins drop 15-25%.
— Michaël van de Poppe (@CryptoMichNL) March 4, 2023
Daan Krypto acts, a pseudonymous cryptoanalyst noted that since the crash Bitcoin closed every 4-hour candle within a range of $41. “The steak has been spoiled.”
Since the collapse, #Bitcoin has closed each 4-hour candle within a range of $41. pic.twitter.com/1Enija1Qgf
— Daan Crypto Trades (@DaanCrypto) March 4, 2023
Analyst Justin Bennett said that Bitcoin is currently seeing a buying round at the January trend line. He said the biggest obstacle now is the monthly open price of $23,130. “If Bitcoin fails to regain that level soon, it will likely move downward towards the $20,800 liquidity pool.”
$BTC captures a bid on this trend line in January.
But the problem now is the $23,130 monthly open.
A failure to regain that level soon means we’ll see #Bitcoin trend lower towards the $20,800 liquidity pool. pic.twitter.com/jMdpyfa8z8
— Justin Bennett (@JustinBennettFX) March 3, 2023
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