Bitcoin has been experiencing significant price volatility recently, culminating in a massive transfer of $230 million worth of BTC to an unknown wallet by a whale investor. This event has fuelled speculation about the impact it could have on Bitcoin’s price in the near future, highlighting the uncertainty surrounding its trajectory. In this article, we will examine the potential factors that could impact Bitcoin’s price and make a prediction about where it could be headed next.
One key factor that has contributed to the negative sentiment in the industry is the recent issues faced by Silvergate Crypto Bank. The bank’s shares dropped nearly 50% in early trading on Thursday after the bank declared it was assessing its ability to continue operations. The bank, which focuses heavily on cryptocurrencies, has been significantly affected by the recent decline in digital token prices and the collapse of Sam Bankman-Fried’s firm, which was one of Silvergate’s banking clients.
Silvergate announced on Wednesday that it would be unable to submit its annual report to the Securities and Exchange Commission by the March 16 deadline due to a further deterioration in its capital situation since its disastrous fourth-quarter earnings report. The bank stated that it was “evaluating the impact of these subsequent events on its ability to remain a going concern for the 12 months following the publication of its financial statements.”
US-listed crypto exchange Coinbase said it was suspending payments to and from Silvergate “in light of recent developments and out of an abundance of caution.” The exchange added that it had “little corporate exposure” to the bank and that institutional client cash transactions would be managed by other banking partners.
This news has contributed to the negative sentiment in the crypto industry, which has already been struggling due to recent market corrections and regulatory concerns. It remains to be seen whether Silvergate’s issues will have a significant impact on the price of Bitcoin and other cryptocurrencies.
However, there is good news on the horizon for the industry’s leading cryptocurrency, with Visa’s Head of Crypto, Cuy Sheffield, affirming the company’s commitment to crypto products despite regulatory scrutiny. Sheffield clarified that reports of Visa and Mastercard slowing down their crypto push were inaccurate, at least when it comes to Visa. Despite challenges and uncertainty in the space, Visa believes that fiat-backed digital currencies running on public blockchains have the potential to play a significant role in the payments ecosystem.
Visa has been working in the crypto space for some time, with plans to roll out cards to 40 new countries. However, things have slowed down lately, particularly after ending global credit card agreements with failed crypto exchange FTX in November. Nevertheless, Visa filed new trademark applications in October, hinting at potential plans for a crypto wallet and a metaverse product.
Currently, Bitcoin is priced at $23,411 with a 24-hour trading volume of $24.9 billion. According to CoinMarketCap, Bitcoin holds the top position with a live market cap of $451 billion, and it has a total quantity of 21,000,000 BTC coins with a circulating supply of 19,305,393 BTC coins.
On the 4-hour chart, Bitcoin met resistance at the critical level of $23,750, which it failed to break through. As a result, BTC experienced a bearish correction and could potentially drop towards the support level of $23,250 or $22,800. If this support level fails, the next level of support is estimated to be around $22,150.
Even though the BTC/USD pair is currently in an oversold condition, there is still a chance for a potential rebound. If this condition persists, it may cause Bitcoin to break through the resistance level of $23,500 and possibly reach a price of $24,250.
For investors interested in buying Bitcoin, it may be worthwhile to explore other options that offer greater growth potential in the short term. Cryptonews has conducted an in-depth analysis of the top 15 cryptocurrencies that investors should consider for 2023.
In conclusion, the crypto market remains volatile, with significant uncertainty surrounding Bitcoin’s trajectory. Factors such as the issues faced by Silvergate, regulatory scrutiny, and market corrections have contributed to negative sentiment in the industry. However, there is still good news on the horizon, with Visa reaffirming its commitment to crypto products. It remains to be seen where Bitcoin’s price will ultimately go, but investors should keep a close eye on the market and make informed decisions based on the latest developments.