Bitcoin Price Prediction As Silicon Valley Bank Collapse Sends Shockwaves Through Global Markets – Can BTC Recover?
Bitcoin (BTC) and Ethereum (ETH) managed to stop their downward trend and experienced a rise in value above $20,000 and $1,400 respectively early Saturday morning. However, this increase can be attributed to the weaker US dollar, which turned negative after February labor data showed lower wage growth, indicating a reduction in inflationary pressures.
The statement indicated that if the Federal Reserve slows the pace of rate hikes, it could potentially make the US dollar less attractive, leading to increased demand and higher prices for cryptocurrencies.
It is important to emphasize that the cryptocurrency market is known for its high volatility, with frequent price fluctuations. Last week, Bitcoin and Ethereum experienced significant losses, with BTC falling 10.88% and ETH losing 10.94% of its value.
The losses incurred by Bitcoin and Ethereum have resulted in the global cryptocurrency market cap falling below $900 billion, reaching $890 billion. However, there are signs that the decline may be slowing, with BTC showing the potential to recover some of the lost ground.
This reversal can be attributed to the weakening US dollar and the recent weaker than expected US jobs data. It is important to note that the cryptocurrency market is highly volatile and price fluctuations are expected.
Silicon Valley Bank’s liquidity crisis raises concerns about cryptocurrencies
Recent reports indicate that Silicon Valley Bank, a major financial institution for venture capital firms, is facing a liquidity crisis. These developments have sparked concerns about potential wider economic implications, leading to a decline in the value of cryptocurrencies.
It is important to note that Silicon Valley Bank is a large financial institution used by many venture capital firms, which may have an indirect impact on the crypto market. While this is not a direct hit to the cryptocurrency sector, it highlights how interconnected the financial world can be, with developments in one area potentially affecting another.
As a result, the crypto market has been negatively affected by news of Silicon Valley Bank’s liquidity problems.
Weaker dollar underpins the crypto market
The US dollar, which had been on a rise, failed to sustain its momentum and weakened on the day. This was due to the latest employment data for February, which showed lower wage growth, suggesting a possible easing of inflationary pressures.
This could cause the Federal Reserve to keep the pace of rate hikes modest, thereby reducing the dollar’s appeal.
Despite the US economy adding jobs quickly in February, slower wage growth and a rise in unemployment have dampened expectations for a 50 basis point interest rate hike at the upcoming Federal Reserve meeting.
The crypto market had seen significant losses in the past week, with both Bitcoin and Ethereum losing nearly 11% of their value. However, the decline began to slow as the US dollar weakened, causing BTC to recover some of the lost ground.
In the coming weeks, the performance of the cryptocurrency market and the US dollar remains uncertain due to the ongoing pandemic and recent market volatility. The focus is now on the CPI printout and general economic conditions, given recent events in the US banking sector.
Peter Schiff recommends selling BTC for gold amid bleeding market
Peter Schiff, a prominent critic of cryptocurrencies, has recently advised investors to sell their Bitcoin (BTC) holdings and invest in gold as the crypto market continues to suffer losses. Schiff, who has been a vocal skeptic of Bitcoin for a long time, has predicted that the industry will face more bankruptcy cases, which could further pressure the market.
Schiff’s statement came in response to the recent fall in the stock market of Silvergate Bank, which has had a significant impact on Bitcoin and other cryptocurrencies. While some investors may disagree with Schiff’s views, some crypto enthusiasts remain optimistic about the future of the industry.
For example, Schiff’s son, Spencer Schiff, countered his father’s post, saying that while blockchain companies and other cryptocurrencies may crash, Bitcoin would remain afloat like a lifeboat.
Bitcoin price
Bitcoin technical analysis suggests a significant bearish trend for the BTC/USD pair as it has broken through the double bottom support level at $20,350. The immediate support level for Bitcoin is at $18,430.
A breach of this level could escalate selling pressure, resulting in a further decline towards the $16,400 level.
On the other hand, the first hurdle for Bitcoin is at the $20,300 resistance level. If Bitcoin breaks above this level, it could trigger buying pressure and potentially push the price towards the $21,400 level.
If the bullish momentum continues, there is a chance that Bitcoin could even reach the $25,000 mark.
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Top 15 Cryptocurrencies to Watch in 2023
Take a look at Industry Talk’s handpicked list of the top 15 altcoins to watch in 2023, curated by Cryptonews. The list is regularly updated with fresh ICO projects and altcoins, so remember to check back often for the latest developments.
Disclaimer: The Industry Talk section contains insights from crypto industry players and is not part of the editorial content of Cryptonews.com.
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