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Key Bitcoin price metrics point to BTC downside below $22.5K

Published 03/07/2023, 02:33 PM
Updated 03/07/2023, 04:20 PM
© Reuters

Bitcoin (BTC) faced a 1-hour $1,420 pullback on March 3 following Silvergate Bank's 57.7% stock crash which was due to significant losses and "suboptimal capitalization." The U.S. fintech-friendly bank was a key financial infrastructure provider for exchanges, institutional investors and mining companies and some investors are worried that its potential demise could have wide-ranging negative impacts on the crypto sector.

The crypto-friendly bank discontinued its digital asset payment railway — Silvergate Exchange Network (SEN) — citing excessive risks. Silvergate also reportedly borrowed $3.6 billion from the U.S. Federal Home Loan Banks System, a consortium of regional banks and lenders, to mitigate the effects of a surge in withdrawals.

USDC peer-to-peer vs. USD/CNY. Source: OKX
Bitcoin 3-month futures annualized premium. Source: Laevitas.ch

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