Bitcoin Price Prediction As Silicon Valley Bank Collapse Sends Shockwaves Through Global Markets – Can BTC Recover?

Bitcoin (BTC) and Ethereum (ETH) managed to halt their downtrend and saw value surge above $20,000 and $1,400 respectively early Saturday morning. However, this rise can be attributed to the weaker US dollar, which turned negative after February jobs data showed slower wage growth, suggesting an easing in inflationary pressures.

The statement suggested that if the Federal Reserve slowed the pace of rate hikes, it could potentially make the US dollar less attractive, which could lead to increased demand and prices for cryptocurrencies.

It is important to emphasize that the cryptocurrency market is known for its high volatility with frequent price swings. Over the previous week, Bitcoin and Ethereum suffered significant losses, with BTC losing 10.88% and ETH 10.94% of their value.

Bitcoin and Ethereum losses have caused the global cryptocurrency market cap to fall below $900 billion and hit $890 billion. However, there are signs that the decline may be slowing, with BTC showing the potential to regain some of its lost ground.

This reversal can be attributed to the weakened US dollar and recent weaker than expected US jobs data. It is important to note that the cryptocurrency market is very volatile and price fluctuations are to be expected.

Silicon Valley Bank’s liquidity crisis sparks concerns about cryptocurrencies

Recent reports indicate that Silicon Valley Bank, a major financial institution for venture capital firms, is facing a liquidity crisis. This development has raised concerns about the possible broader financial impact, 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 could have an indirect impact on the crypto market. While not a direct blow to the cryptocurrency sector, it shows how interconnected the financial world can be, with developments in one area potentially impacting another.

As a result, the crypto market was negatively impacted by the news of Silicon Valley Bank’s liquidity problems.

Weaker dollar supports the crypto market

The US Dollar, which was in an upward rally, failed to maintain momentum and weakened on the day. This was due to the latest February jobs data showing slower wage growth, suggesting a possible moderation in inflationary pressures.

This could result in the US Federal Reserve keeping the pace of rate hikes moderate, thereby reducing the attractiveness of the dollar.

Although the US economy was quick to add jobs in February, slower wage growth and a rise in the unemployment rate have dampened expectations of a 50 basis point rate hike during the upcoming Federal Reserve meeting.

The crypto market had suffered significant losses over the past week, with both Bitcoin and Ethereum losing almost 11% of their value. However, the decline began to fade as the US dollar weakened, causing BTC to regain some of its lost ground.

In the coming weeks, the development of the cryptocurrency market and the US dollar remains uncertain due to the ongoing pandemic and recent market volatility. Given the recent events in the US banking sector, the focus is now on CPI pressures and broader financial conditions.

Peter Schiff advises selling BTC for gold amid bleeding market

Peter Schiff, a prominent cryptocurrency critic, recently advised investors to sell their Bitcoin (BTC) holdings and invest in gold as the crypto market continues to suffer losses. Schiff, who has long been an outspoken bitcoin skeptic, has predicted that the industry will face more bankruptcies, which could further weigh on the market.

Schiff’s statement came in response to the recent decline in Silvergate Bank’s stock market, which has had a significant impact on Bitcoin and other cryptocurrencies. While some investors may disagree with Schiff’s viewpoints, some crypto enthusiasts remain optimistic about the future of the industry.

For example, Schiff’s son, Spencer Schiff, countered his father’s post, stating that while blockchain companies and other cryptocurrencies could collapse, Bitcoin would stay afloat as a lifeboat.

bitcoin price

Bitcoin technical analysis is pointing to a clear bearish trend for the BTC/USD pair as it broke the double bottom support at $20,350. The immediate support level for bitcoin is $18,430.

A break of this level could escalate selling pressures which would result in a further decline towards the $16,400 level.

Bitcoin price chart – Source: Tradingview

On the other hand, the first hurdle for bitcoin is the $20,300 resistance level. If bitcoin surpasses this level, it could trigger buying pressure and potentially push its price towards $21,400.

If the upward movement continues, there are chances that Bitcoin could even reach the $25,000 level.

Buy BTC now

Top 15 Cryptocurrencies to Watch in 2023

Take a look at Industry Talk’s curated list of the top 15 altcoins to watch in 2023, curated by Cryptonews. The list is regularly updated with new ICO projects and altcoins, so check back regularly for the latest developments.

Disclaimer: The Industry Talk section features insights from crypto industry players and is not part of Cryptonews.com editorial content.

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Cryptocurrency Price Tracker – Source: crypto news

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