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Death Cross Continues to Hang Over Bitcoin

By:
Alexander Kuptsikevich

The total capitalization of the crypto market fell 5% over the week to $1.03 trillion, according to CoinMarketCap.

Death Cross Continues to Hang Over Bitcoin

In this article:

Bitcoin and Altcoins Dip While Silvergate Bank’s Possible Bankruptcy Looms

Bitcoin fell 5.2% last week to close at $22,400. Ethereum lost 4.4% to $1570. Other leading altcoins in the top 10 fell between 2.9% (XRP) and 11.5% (Polygon).

Bitcoin weekly chart

The total capitalization of the crypto market fell 5% over the week to $1.03 trillion, according to CoinMarketCap.

Bitcoin’s most significant drop last week came on Friday amid reports of the possible bankruptcy of Silvergate, a bank that services major cryptocurrency companies. The bank announced the closure of its cryptocurrency payment service.

While BTCUSD has held up during furious sellers’ attacks, it is in no hurry to bounce back from the bottom. Technically, the 50-week moving average continues to act as a valid resistance from which the selling intensifies. The Death Cross formed on the weekly timeframe makes for a cautious view of the near-term outlook and keeps the potential for a return to the $16.3-18.0 level.

Crypto News

According to media reports, global giant market-maker Citadel Securities plans to increase its stake in Silvergate Bank to help it out of its liquidity crisis. Other rumors suggest that Wells Fargo is a potential buyer.

SEC chief Gary Gensler has warned cryptocurrency exchanges against failing to comply with custodian status. He said that if an exchange collapses, “customer funds often become the property of the bankrupt entity”.

Brad Garlinghouse, CEO of Ripple, said that more and more cryptocurrency and fintech companies are leaving the US, which is stifling innovation in the country. Around 300 payment providers from 45 countries believe blockchain and cryptocurrencies can improve traditional finance, according to a survey conducted by Ripple.

The UK’s Nationwide Building Society and HSBC have imposed restrictions on card purchases of cryptocurrencies.

About the Author

Alexander is engaged in the analysis of the currency market, the world economy, gold and oil for more than 10 years. He gives commentaries to leading socio-political and economic magazines, gives interviews for radio and television, and publishes his own researches.

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