<p>Market picture</p><p>The crypto
market is now showing increased volatility. On Monday morning, the price
climbed from Friday’s low of $19.5K up to $22.7K. There are more fundamental
factors behind bitcoin’s decline, while we see tech behind the rebound in
recent days.</p><p>The problems
at Silicon Valley Bank triggered a sell-off in risky assets, including bitcoin.
At one point, it fell below its 200-day average, although it was higher at
Friday’s close, attracting buyers. Later, the RSI on the daily timeframe moved
out of the oversold territory – another early bullish signal.</p><p>However, the
upside amplitude was provided by reduced liquidity. On Monday, Bitcoin faces an
important test of market sentiment. During the day, we must watch closely to
see if we have a clean sell-off by the hawks. If so, it’s an important signal
that the recent rally was false and that the big players are still selling at
better prices.</p><p>Potential
buyers would still be better off waiting for a fix above $23,000 to confirm a
bullish reversal.</p><p>According to
CoinMarketCap, the total capitalisation of the crypto market passed $1 trillion
on Monday morning.</p><p>Stablecoin
USD Coin (USDC) lost its peg to the US dollar on Saturday, falling below $0.88
amid the collapse of Silicon Valley Bank (SVB), which held $3.3 billion of its
reserves. DAI is also in trouble, falling below $0.90 as USDC partially backs
the token. At the same time, many other stablecoins have crossed the $1.01 mark.</p><p>News background</p><p>Tron founder
Justin Sun proposed the creation of a bank for the needs of the crypto industry
amid the collapse of Silicon Valley Bank.</p><p>Michael
Barr, deputy head of the US Federal Reserve, has proposed creating a group to
develop the regulation of crypto assets. According to him, if the Fed fails to
regulate stablecoins, their widespread adoption could threaten the US economy.</p><p>The US
Treasury unveiled plans for the 2024 budget replenishment and said it intends
to impose a 30% excise tax on mining companies‘ electricity use.</p><p>Renowned
economist and cryptocurrency sceptic Peter Schiff called for cryptocurrencies
to be sold as the industry is „about to see more bankruptcies“. He
pointed to the collapse of Silvergate Bank and US economic data that would
force the Fed to raise interest rates.</p><p>Twitter CEO
Elon Musk said he was „open to the idea“ of buying the troubled
Silicon Valley Bank to turn the social network into a financial hub and digital
bank.</p><p>This article was written by <a target=“_blank“ href=“https://www.fxpro.com/“ target=“_blank“ rel=“follow“>FxPro</a>’s Senior Market Analyst Alex
Kuptsikevich.</p>
market is now showing increased volatility. On Monday morning, the price
climbed from Friday’s low of $19.5K up to $22.7K. There are more fundamental
factors behind bitcoin’s decline, while we see tech behind the rebound in
recent days.</p><p>The problems
at Silicon Valley Bank triggered a sell-off in risky assets, including bitcoin.
At one point, it fell below its 200-day average, although it was higher at
Friday’s close, attracting buyers. Later, the RSI on the daily timeframe moved
out of the oversold territory – another early bullish signal.</p><p>However, the
upside amplitude was provided by reduced liquidity. On Monday, Bitcoin faces an
important test of market sentiment. During the day, we must watch closely to
see if we have a clean sell-off by the hawks. If so, it’s an important signal
that the recent rally was false and that the big players are still selling at
better prices.</p><p>Potential
buyers would still be better off waiting for a fix above $23,000 to confirm a
bullish reversal.</p><p>According to
CoinMarketCap, the total capitalisation of the crypto market passed $1 trillion
on Monday morning.</p><p>Stablecoin
USD Coin (USDC) lost its peg to the US dollar on Saturday, falling below $0.88
amid the collapse of Silicon Valley Bank (SVB), which held $3.3 billion of its
reserves. DAI is also in trouble, falling below $0.90 as USDC partially backs
the token. At the same time, many other stablecoins have crossed the $1.01 mark.</p><p>News background</p><p>Tron founder
Justin Sun proposed the creation of a bank for the needs of the crypto industry
amid the collapse of Silicon Valley Bank.</p><p>Michael
Barr, deputy head of the US Federal Reserve, has proposed creating a group to
develop the regulation of crypto assets. According to him, if the Fed fails to
regulate stablecoins, their widespread adoption could threaten the US economy.</p><p>The US
Treasury unveiled plans for the 2024 budget replenishment and said it intends
to impose a 30% excise tax on mining companies‘ electricity use.</p><p>Renowned
economist and cryptocurrency sceptic Peter Schiff called for cryptocurrencies
to be sold as the industry is „about to see more bankruptcies“. He
pointed to the collapse of Silvergate Bank and US economic data that would
force the Fed to raise interest rates.</p><p>Twitter CEO
Elon Musk said he was „open to the idea“ of buying the troubled
Silicon Valley Bank to turn the social network into a financial hub and digital
bank.</p><p>This article was written by <a target=“_blank“ href=“https://www.fxpro.com/“ target=“_blank“ rel=“follow“>FxPro</a>’s Senior Market Analyst Alex
Kuptsikevich.</p>
This article was written by FxPro FXPro at www.forexlive.com.
