Crypto markets under pressure over Silvergate uncertainty

Cryptocurrency prices sank last week and remained low on Monday. Uncertainty over the future of Silvergate put pressure on crypto markets, driving many major cryptocurrency prices down. Global crypto market capitalization has fallen in the past few days to just above the $1 trillion mark. Bitcoin price dropped by 5% in a single hour on Friday night, as concerns about the future of Silvergate bank intensified. FTX fallout has been affecting Silvergate, with the bank facing liquidity problems. 

Long rate hikes also drive risk assets down. US inflation data show that price pressures in the US remain high and are not easing at the pace anticipated, weighing cryptocurrency prices down. Market expectations of the Fed peak interest rate continue to rise on hotter-than-expected US price pressures, putting pressure on crypto markets. The Fed might raise interest rates for longer than previously expected, putting pressure on crypto markets. Current market odds lean towards further tightening in the upcoming Fed meetings and an increase in interest rates up to 5.25%. Fed Chair Powell’s testimony before the Senate Banking Committee on the 7th and 8th is expected to attract market attention and is likely to affect cryptocurrency prices.

Bitcoin price traded sideways on Monday with low volatility, oscillating around the $22,400 level. If the BTC price declines, support can be found near $21,400, while resistance may be encountered near $24,600. 

Ethereum price also traded sideways on Monday, fluctuating around the $1,560 level. If Ethereum's price declines, it may encounter support near $1,460, while if it increases, resistance may be encountered near $1,680.

BTC/USD 1h Chart

ETH/USD 1h Chart

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Written by:
Myrsini Giannouli

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