Bitcoin prices have fluctuated wildly in recent days amid uncertainty surrounding USDT, the world’s largest stablecoin. Tether has been facing regulatory issues, causing FUD (fear, uncertainty, and doubt) in the crypto market, causing BTC to fall to $22,000.
At the same time, some well-known cryptocurrencies such as Litecoin (LTC) and Dogecoin (DOGE) also fell slightly.
The recent market slide can be attributed to the release of U.S. manufacturing data and concerns over the accessibility of banking services for U.S. cryptocurrency companies.
This article will examine the current state of the market and make a Bitcoin price prediction for the next few days.
Uncertainty over Silvergate weakens cryptocurrencies
After the market close on Wednesday, Silvergate filed a report with the US Securities and Exchange Commission (SEC), announcing a delay in filing its annual report because of the need to assess the impact of a number of events on corporate activity.
As a result, cryptocurrencies, including bitcoin, have plummeted in value and are showing mixed signals. Notably, the Silvergate incident had a significant impact on the value of cryptocurrencies.
Notably, Silvergate Capital (SI) announced late Wednesday that it would delay filing its annual report due to losses arising from the November 2022 FTX incident and multiple regulatory investigations.
As a result, this has an adverse effect on market sentiment, causing investors and traders to lose confidence in the stability and security of the crypto industry, which may lead to a general sell-off in global markets.
Additionally, the backlash Silvergate Capital faced has led to heightened regulatory scrutiny of the crypto industry, making authorities even more hesitant to license businesses in crypto-related industries. This may limit the growth and expansion of the industry.
Risk aversion in the bitcoin market
Global cryptocurrency markets are expected to end the week on a bearish bias due to a number of factors. The release of strong US economic data sparked speculation that the US Federal Reserve (Fed) may take more aggressive action to fight persistent inflation by raising interest rates.
Investors and traders are closely watching economic indicators to brace for rising interest rates and inflation. With the economy performing well and inflationary pressures remaining, the Fed was likely to raise its policy rate higher than expected late last year.
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Bitcoin is currently trading at $22,445 with a 24-hour trading volume of $13.6 billion, down 4.6% over the past 24 hours. Likewise, ETH is trading at $1,570 with a 24-hour volume of $5.1 billion, down 5% over the past 24 hours.
According to technical analysis, BTC could break out of the symmetrical triangle at $23,250. In this case, the price will touch the $22,046 support area. A break below this support area could lead BTC down to $21,450.
BTC Price Chart | Source: Tradingview
Also, the presence of a bearish engulfing candle indicates a strong selling bias. However, if the candlestick closes above this level, a bullish rally could be in place with a target at $22,800 or higher, targeting the $23,750 mark.
- Ripple CEO Says Crypto Industry ‘Has Already Started’ Moving Outside the US
- Whales Abandon BTC and ETH – Another Bear Cycle Is Looming?
- Veteran short-seller predicts Silvergate bank will fail within 1 week
Mingying
According to Crypto News
