The value of Bitcoin (BTC) is facing renewed bearish sentiments as the crypto market grapples with the uncertainty resulting from concerns around the sustainability of digital asset-friendly Silvergate bank. This situation has resulted in a keen interest in how Bitcoin price movement will react in the coming days.
A crypto analyst by Twitter pseudonym StockmoneyL in a tweet on March 3, stated that the Silvergate liquidity concerns is a Bitcoin ‘short-term sentiment killer.’
With the situation putting pressure on Bitcoin’s price, the analyst identified the $21,400 level as the next support position if the maiden cryptocurrency fails to overcome the $22,800 resistance.
Silvergate bank fallout
The projection comes after Bitcoin suffered a sharp fall in the wake of Silvergate, stating that it was evaluating its ability to continue with operations and that it was in the process of re-evaluating its businesses and strategies.
Silvergate also noted that it faced a bank run late last year, leading to the sale of its assets at a loss, affecting its overall capitalization. The uncertainty has resulted in the possibility of an increased regulatory crackdown, considering that the lender is a member of the Federal Reserve System.
Interestingly, crypto trading expert and analyst Michaël van de Poppe warned that the Silvergate situation mirrors the Mt.Gox hacking incident, and investors should expect further fallout from the situation.
“Silvergate crashes yesterday, and markets are down. Within a timespan of 12 hours, we’re talking about Mt. Gox, the worse to happen with Ethereum (ETH) unlocks, Tether to collapse, Big Crisis to happen, and more. Typical crypto,” he said in a tweet on March 3.
Bitcoin price analysis
By press time, Bitcoin was trading at $22,339, representing daily losses of about 4%. On the weekly chart, BTC is down almost 7%.
Bitcoin’s current level comes after the asset dropped by over $1,000 within 60 mins from $23,500 to $22,240.
Finally, Bitcoin’s renewed selling pressure has pushed the cryptocurrency’s market cap to hit $431.9 billion.
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