- Bitcoin falls and stops at key support line, $70 billion has been wiped out from the capitalization of the entire cryptocurrency market
- The value of liquidations caused by Bitcoin's drop below $20,000 is already more than $307 million
- Weakening indexes on Wall Street put pressure on cryptocurrencies as the risk of a systemic crisis grows
- According to Arkham Intelligence, cryptocurrency lender Voyager Digital has deposited a total of $138.88 million in 25 different cryptocurrencies on exchanges since the beginning of March. The company, which is in liquidation, has been selling off assets, a pace that has increased in recent days. In March, Voyager liquidated more than $100 million in ETH and $26 million in ShibaInu, among other assets;
- Joe Biden's proposed budget for the new year includes the elimination of tax breaks for cryptocurrency investors and a higher tax imposed on so-called 'miners' digging Bitcoin
- Wells Fargo analysts point out that Signature Bank (SBNY.US) will not be the new Silvergate Capital and could potentially benefit after its closure
The most liquidations of futures traders took place on the Binance ($307 million) and Huobi ($45 million) exchanges. Traders on BTC lost the most, with a total of nearly $112 million. Source: coindesk
- Cryptocurrencies were weighed down by the definitive closure of crypto-bank Silvergate Capital. Sentiment was then hit by a massive sell-off in Wall Street financial institutions, driven by the plight of SVB Silicon Valley Bank (SIVB.US);
- Concerns grew over banks' unrealized losses on bonds whose valuations have been affected by the Fed's monetary tightening cycle. The Federal Deposit Insurance Corporation reported in February that U.S. banks' unrealized losses on available-for-sale and held-to-maturity securities totaled $620 billion (December 31, 2022), up from $8 billion a year earlier - before the Fed began raising interest rates;
- In addition, there was also a 'flash crash' of the Huobi token overnight, which saw a 90% drop in just a few minutes although it began to rebound hours later. The exchange intends to create a $100 million fund to support liquidity. All of this, coupled with comments from regulators caused a drop in sentiment.
Looking at the chart of BITCOIN, on D1 interval, we see that the price has reached a very interesting place from the technical side. The declines have stopped at the 200-session moving average (SMA200, red line), and the RSI relative strength indicator is showing the levels of extreme oversold seen recently after the FTX collapse. All this means that if systemic problems do not spike in the coming days, the bulls may try their chances to break out above the psychological resistance at $20,000.
Source: xStation
