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Strong U.S. equities and a floundering dollar normally serve to boost BTC price action — but Silvergate is the elephant in the room.
Bitcoin (BTC) stayed lower into the weekend as ongoing problems at Silvergate bank pressured markets.
BTC/USD 1-day candle chart (Bitstamp). Source: TradingView
Bad news holds Bitcoin back
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD lingering at around $22,350 on March 4.
The pair had managed to avoid further losses after the initial shock around Silvergate wiped 5% off the spot price in minutes.
With United States equities delivering a strong finish to the week, Bitcoin and altcoins were unable to capitalize on what traders argued would normally be an opportunity for gains.
“Most global equity indices have now printed higher lows,” popular commentator Tedtalksmacro wrote in part of an update overnight.
“If it weren’t for the silvergate fears, BTC would be primed to breach the highs above 25k next week.“
S&P 500 1-hour candle chart. Source: TradingView
Cointelegraph contributor Michaël van de Poppe, founder and CEO of trading firm Eight, hoped that a comeback for Bitcoin could still hit.
“Bitcoin dropped from $23,800 to $22,300, while the Nasdaq and S&P were making strong bounces. Matter of time until Bitcoin catches up,” he told Twitter followers.
A failed attempt by the U.S. dollar to head higher formed another potential tailwind for crypto, but this is still untapped as the week’s trading concluded.
$DXY 1D Chart. Daily Is reaching a tough spot for crypto. Testing a KumoCloud breakout a few days in a row here, a break above and crypto likely will go into a bearish trend for a bit. Rejection still possible here, but more volatility ahead for BTC/Alts while in this range#BTC https://t.co/h0DZDUaTmf pic.twitter.com/GGmLTqrDiY
— KevinCrates (@kevincrates_) March 3, 2023
Silvergate sags to all-time low
Silvergate halted its institutional fiat settlement arm, the Silvergate Exchange Network, on March 3 as concerns about bankruptcy multiplied.
Related: 3 BTC price hurdles Bitcoin bulls are failing to clear in 2023
As some proposed alternatives for exchanges, others regretted the bank’s downfall and hoped that the situation would improve.
Bitcoin advocate Nic Carter said that he had “always respected Silvergate for being unapologetically pro crypto when virtually no one else was.“
“Sad to see their current predicament, hope they make it through the other side,” he added.
The stock of Silvergate Capital closed the week at record lows, at one point trading below $5. At its peak during Bitcoin’s 2021 all-time highs, it traded above $150.
Silvergate Capital (SI) 1-week candle chart. Source: TradingView
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