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 had managed to avoid further losses after the initial shock surrounding Silvergate erased 5% of the spot price in minutes.
With US stocks delivering a strong end to the week, Bitcoin and altcoins were unable to capitalize on what traders argued would normally be an opportunity for gains.
“Most global stock indices have now posted higher lows,” popular commentator Tedtalksmacro wrote as part of an overnight update.
“If it wasn’t for the Silvergate scare, BTC would be poised to break the highs above 25k next week.”
Cointelegraph contributor Michaël van de Poppe, founder and CEO of trading firm Eight, hoped that a comeback for Bitcoin could still hit.
“Bitcoin fell from $23,800 to $22,300 while Nasdaq and S&P made strong rejections. Question of time until Bitcoin catches up,” he told Twitter followers.
A failed attempt by the US dollar to go higher created another potential tailwind for crypto, but this remains untapped as the week’s trading ended.
Silvergate sinks to all-time low
Silvergate shut down its institutional fiat settlement arm, the Silvergate Exchange Network, on March 3 as worries about bankruptcy multiplied.
Related: 3 BTC Price Hurdles Bitcoin Bulls Will Fail in 2023
Like some suggested alternatives to exchanges, others lamented the bank’s downfall and hoped that the situation would improve.
Bitcoin Lawyer Nic Carter said that he had “always respected Silvergate for being unapologetically pro crypto when virtually no one else was.”
“Sad to see their current predicament, hope they come through the other side,” he added.
Shares of Silvergate Capital closed the week at record lows, at one point trading below $5. At its peak during Bitcoin’s 2021 highs, it traded above $150.
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