Strong US stocks and a rising dollar usually fuel BTC price action – but Silvergate is the elephant in the room.
Bitcoin
BTC
ticking down
$20,186
remained low over the weekend as ongoing problems at Silvergate Bank weighed on the business.
The bad news is holding Bitcoin back
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD hovering around $22,350 on March 4.
The pair managed to avoid further losses after the initial shock surrounding Silvergate wiped 5% off the price in minutes.
With the U.S. stock market closing for the week, Bitcoin and altcoins have not been able to make gains among traders arguing that there is always an opportunity for progress.
“Currently global stocks are generally reported lower,” popular commentator Tedtalksmacro wrote in part of an overnight update.
“If it wasn’t for the Silvergate scare, BTC would have been poised to break the 25k mark next week.”
Cointelegraph contributor Michaël van de Poppe, founder and CEO of trading firm Yim, hopes that the return to Bitcoin can still hit.
“Bitcoin fell from $23,800 to $22,300 as Nasdaq and S&P declined. Questions about time until Bitcoin catches up,” he told Twitter followers.
A failed attempt by the US dollar to go higher creates another potential tailwind for crypto, but this has not yet materialized as the trading week ends.
Silvergate sinks to an all-time low
Silvergate closed its fiat settlement arm, the Silvergate Exchange Network, on March 3 due to concerns about increased financial losses.
Related: 3 BTC Price Hurdles Bitcoin Bulls Will Fail In 2023
As some have suggested changes to the exchange, others complain of the bank’s decline and hope that the situation will improve.
Bitcoin lawyer Nic Carter said that he has “always respected Silvergate for not admitting to crypto when it seemed like no one else.”
“It’s sad to see their situation now, hope they come out on the other side,” he added.
Shares of Silvergate Capital closed the week at a record low, at a market below $5. At its peak during Bitcoin’s 2021 high, it traded above $150.
