Bitcoin, Ethereum, Dogecoin Slide as Silvergate Crashes

Major coins traded in the red on Sunday evening as investors continued to digest a crypto-friendly bank Silvergate Capital’s (NYSE:SI) failure.

What happened: Apex Cryptocurrency Bitcoin (CRYPTO:BTC) was trading below $23,000 after a volatile trading session.

Ethereum (CRYPTO:ETH) was trading hands below $1,600. Dogecoin (CRYPTO:DOGE) was trading at $0.074, down 1.65% in the past 24 hours.

At the time of writing, the global crypto market capitalization stood at $1.03 trillion, down 0.68% from the last day.

U.S. stocks rose on Friday as Treasury yields pulled back from recent highs, with investors gauging the cumulative effects of Federal Reserve rate hikes already implemented and heeding comments from the central bank this week . The S&P 500 rose 1.61% while the Nasdaq Composite climbed 1.97%.

See more: Best Crypto Day Trading Strategies

News Highlights: Binance in 2009, reportedly took a proactive approach to avoid potential lawsuits from US authorities, developing a plan that included launching a US entity. According to a report by The Wall Street Journal, a Binance executive warned colleagues in a private chat that a possible lawsuit from US regulators, who had flagged an upcoming crackdown on unregulated offshore crypto players, would be like “ nuclear fallout” for its activity.

Securities and Exchange Commission According to Ripple CEO Brad Garlinghouse, the (SEC) approach to regulation through “enforcement” is not a “sound way” to regulate an industry. In a Bloomberg interview on March 3, Garlinghouse warned that the SEC’s current methodology puts the United States at “serious risk” of being delayed in the future of blockchain and crypto innovation. He suggested that, given the dynamic and rapidly changing nature of the industry, this approach to regulation could make the United States less attractive to crypto firms and investors.

Analyst Notes: “Bitcoin is in decline after a key banking provider for the crypto industry struggles for survival. Silvergate’s struggles have been firmly in place all last year, but now liquidity risks are on the minds of many crypto traders. Failure to file its annual return on time raised fears that they might not survive. Several key crypto companies are abandoning Silvergate and this is bringing back contagion issues,” said Edward Moya, senior market analyst at OANDA.

Michael van de Poppefounder and CEO of a trading company Eight, warned that if Bitcoin fails to hold $21,300, altcoins could suffer significant losses. If the support level breaks, he thinks Bitcoin price could drop to near $19,500, while altcoins could see declines of up to 25%.

Van de Poppe, however, maintained a more bullish view overall, suggesting that $40,000 could still appear “in a few months.”

“Moral of the story: average cost and having balls to buy when you don’t feel confident,” he advised in part of a later article.

Crucial area for #Bitcoins is to hold the $21.3K area.

Lose that, and we’ll see another sweep towards $19.5,000 and #altcoins decrease of 15 to 25%.

—Michael van de Poppe (@CryptoMichNL) March 4, 2023

Daan Crypto Trades, a pseudonymous crypto analyst noted that since the outage, Bitcoin has closed every 4-hour candle in the $41 range. “The steak was broken.”

Since the breakdown, #Bitcoins closed each 4-hour candle in a range of $41. pic.twitter.com/1Enija1Qgf

— Daan Crypto Trades (@DaanCrypto) March 4, 2023

Analyst Justin Bennett stated that Bitcoin is currently in a buying frenzy on the January trendline. He said, however, that the main hurdle now is the monthly opening price of $23,130. “If Bitcoin fails to recover this level soon, it is likely to decline towards the $20,800 liquidity pool.”

$BTC catches a bid on this January trendline.

But the problem now is the monthly open of $23,130.

A failure to recover this level soon means we see #Bitcoins trending down towards the $20,800 liquidity pool. pic.twitter.com/jMdpyfa8z8

— Justin Bennett (@JustinBennettFX) March 3, 2023

Read more: Web3 token overtakes Bitcoin and Ethereum in weekly gains with Microsoft tie up 33%