Bitcoin (BTC) held lower over the weekend as the ongoing issues at Silvergate bank put pressure on the markets.
Bad news slows down Bitcoin
Data from Cointelegraph Markets Pro and TradingView showed that BTC/USD was holding around $22,350 on March 4.
The pair managed to avoid further losses after the initial shock around Silvergate wiped 5% off the spot price within minutes.
However, with US stocks closing out the week strongly, Bitcoin and altcoins were unable to capitalize on what traders argued would normally be an opportunity for profit.
“Most global stock indices have now hit higher lows…”, popular commentator Tedtalksmacro wrote partly from an overnight update.
“If it wasn’t for the Silvergate fears, BTC would be poised to break the highs above 25k next week.”
Cointelegraph contributor Michaël van de Poppe, founder and CEO of trading firm Eight, hoped that Bitcoin could still make a comeback.
“Bitcoin fell from $23,800 to $22,300 while the Nasdaq and S&P were making strong rebounds. Matter of time until Bitcoin catches up,” he said. said Twitter followers.
A failed attempt by the US dollar to rally higher formed another potential tailwind for cryptocurrencies, which had yet to be tapped as the week’s trading wrapped up.
$DXY 1D graph. Daily is reaching a difficult point for cryptocurrencies. Testing a KumoCloud breakout a few days in a row here, a break above and the crypto will probably go into a downtrend for a while. Rejection still possible here, but more volatility ahead for BTC/Alts while in this range#BTC https://t.co/h0DZDUaTmf pic.twitter.com/GGmLTqrDiY
—KevinCrates (@kevincrates_) March 3, 2023
Silvergate falls to record lows
meanwhile silvergate arrested its institutional trust liquidation arm, Silvergate Exchange Network (SEN), on March 3, as concerns over bankruptcy continued to multiply.
Related: 3 BTC Price Hurdles Bitcoin Bulls Fail To Overcome In 2023
Like some proposed exchange alternatives, others lamented the bank’s fall and hoped that the situation would improve.
Bitcoin Advocate Nic Carter saying that he had “always respected Silvergate for being unapologetically outlawed when virtually no one else was.”
“It’s sad to see their current situation, I hope they make it to the other side,” he added.
Shares of Silvergate Capital (SI) closed the week at record lows, trading at one point below $5. At its peak during Bitcoin’s all-time highs in 2021, it was trading above $150.
The views, thoughts and opinions expressed here are those of the authors alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
