Bitcoin Price: BTC Hits Two-Week Low Amid Silvergate Uncertainty

Bitcoin price was in the red on Friday, extending Thursday’s losses amid a wave of uncertainty concerning Silvergate Capital. BTC has slipped more than 7% in the past 24 hours, while its total market capitalization plunged 4.30%. As of the time of writing, the largest cryptocurrency by market cap was trading 4.39% lower at $22,428.99.

Silvergate Crumbles

Bitcoin price recorded a steep decline on Friday, dropping below the important level of $23,000 amid a wave of uncertainty about Silvergate Capital. Silvergate Bank is a Californian bank that mostly deals in cryptocurrency transactions. Following the fall of Sam Bankman-Fried’s crypto exchange platform FTX in 2022, there have been rising concerns about the health of the bank.

Silvergate’s shares shed more than half of their value on Thursday after the Californian bank said that it was evaluating its ability to survive as a going concern. The bank was largely hit by the collapse of FTX, which was a banking client. The company’s announcement saw Bitcoin slip to its lowest level in two weeks. Other cryptocurrencies such as Ethereum, XRP, Avalanche, and Dogecoin also suffered declines.

Silvergate stated in a filing late Wednesday that the impact of recent events, notably, subsequent regulatory inquiries, raised questions about the company’s ability to continue going as a concern. Many digital asset firms, stablecoin issuers, and trading desks are no longer accepting transactions through Silvergate. Crypto firms such as Coinbase and Galaxy Digital said that they would no longer accept or initiate payments through the bank.

Bitcoin Price Outlook

The daily chart shows that the Bitcoin price has been in a sharp decline over the last day. The crypto market leader has moved below the 25-day and 50-day moving averages but remains above the 50-day moving average. Its Relative Strength Index (RSI) has dropped below the neutral zone, hinting at a lack of momentum leading to a decrease in buying pressure.

Therefore, as investors digest key economic data, I expect the Bitcoin price to remain bearish in the short term. Even so, the BTC price is likely to continue holding above the key support level of $22,000. A move past the important level of $24,000 will invalidate the bearish view.

BTC Price Chart

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