With the Silvergate debacle looming in the crypto market, it could be a while before Bitcoin trades back to higher levels.
With the crypto market set to break records in March after a stellar beginning in 2023, a banking crisis has become a hurdle on its way. The Silvergate Bank’s recent downfall has again raised questions on the crypto market’s regulation, with further calls for more stringent measures. While the crypto community is optimistic about its long-term positive outlook, most traders and investors have adopted a wary approach presently.
For instance, the crypto market witnessed Bitcoin trade in a very close range in the last couple of days without much change. This could indicate the reluctance of bulls to take risks in the present scenario. ETH also remained just above $1500 while Cardano, Sonala, XRP, Dogecoin, and others were trading with losses. In the early hours of March 5, Bitcoin had touched $22600 before dipping below the mark again.
Bitcoin maintained its 24-hour volume at around $30 billion while it occupied a market capitalization of approximately $459 billion out of the $1 trillion crypto market. Most analysts and experts had expected BTC to breach $25000 if not for the recent crisis. As the Silvergate Bank’s crisis loomed large on the crypto, pressures would likely remain on the crypto market for a few more days.
BTC/USD YTD price chart
Bitcoin trades at around $22300 on March 5, 2023, with BTC/USD up by 0.12% in the previous 24 hours. Almost all other altcoins witnessed declining trends in the last 24 hours. BTC/USD is trading lower than its 20-day EMA (23,257.33). With Bitcoin trading below $22500, its immediate support is at $22250, while resistance is at $22500.