Bitcoin breaks $23,000 | coindesk JAPAN | Coindesk Japan

Bitcoin (BTC) slumped by more than 50% on Friday morning after crypto-focused bank Silvergate Capital’s share price fell more than 50% over concerns about business continuity. It fell, but rose in the afternoon, and at the time of writing this article, it rose 0.4% in 24 hours to around $ 3,500 for 2 man (However, after 10:20 Japan time, it dropped sharply to $ 23,000. divided).

Silvergate will be a day late, will need more than two weeks to prepare its annual report (Form 10-K, Japan’s equivalent to securities reports), and the impact of recent events will hamper its ability to continue operations. He said it could have an impact. In response to the announcement, many cryptocurrency companies stopped trading with the bank, and just before the end of trading hours on the 2nd, the stock price fell to 58%.

Unlike the FTX bankruptcy last November, when bitcoin plummeted to multi-year lows, concerns over Silvergate had little effect on the price of bitcoin. Bitcoin price hovered in the mid-$23,000s on the 2nd.

“It has to be seen as a positive” that the Silvergate news isn’t a negative, said Julius de Kempenaer, senior technical analyst at StockCharts.com.

“If crypto traders are really panicking, it should be showing in the prices by now. I think we can.”

Ethereum (ETH) is up 0.5% near $1,650. The CoinDesk Market Index (CMI), which measures the performance of the entire cryptocurrency market, rose 0.06%.

In the stock market, the S&P 500 rose 0.8%. According to the Chicago Mercantile Exchange’s (CME) FedWatch Tool, market participants are eyeing the Federal Open Market Committee (FOMC) meeting at the end of this month, with more than 30% of traders now expecting the FOMC to be 0.5%, not 0.25%. % rate hike.

Singaporean crypto options trading firm QCP Capital said Federal Reserve officials “continued to talk about further rate hikes over the long term, with some hinting at the difficulty of a soft landing.”

“I think a lot of market players are expecting a sideways market for the long term,” said Jake Boyle of cryptocurrency broker Caleb and Brown. The Fed has “decided to tighten monetary terms for the foreseeable future” to curb higher-than-expected inflation.

As for bitcoin prices, “The high-high/high-low rhythm is still going on, until it breaks below the recent low of $22,800, which is the first sign of weakness. “Wow,” said StockCharts.com’s Kempener. He sees deeper support near $21,400.

“It remains to be seen what the positives could be, but if Bitcoin recovers near $25,000, the outlook will certainly improve,” Kempener continued.

｜Translation: coindesk JAPAN
｜Editing: Takayuki Masuda
| Image: CoinDesk
｜Original: Bitcoin Price Holds Steady Above $23K as Silvergate Capital Crumbles