Black_background_logo_BitcoinWorld-removebg-preview
Bitcoin News

First Mover Asia: Bitcoin Is Stuck Between Silvergate and China

Both bitcoin and ether prices are relatively unchanged to start the week, with bitcoin now trading at $22,463, an increase of 0.6% on the day, and ether trading at $1,569, an increase of 0.1%.

According to some, the current state of the market is comparable to that of a precipice. In spite of the fact that we are no longer in the depths of crypto winter, the market needs to decide how much it will continue to price in Silvergate’s crypto failure while simultaneously taking into consideration favorable economic news from China.

It does not appear that the Silvergate scandal is causing widespread infection. And it’s possible that most of the price decline connected with that news has already occurred,” Matt Weller, the global head of research at Forex.com, said in an interview with CoinDesk TV on Friday. “It wouldn’t surprise me to see bitcoin retrace back down to $20,000, or maybe even $18,000, to sort of retest those lows,” the analyst said. “That wouldn’t be surprising.” But…it would appear that the worst of the winter is behind us at this point.

At the same time, economic data from a re-opened China, which promptly abolished all Covid restrictions at the beginning of the year, may provide support to the “China narrative,” which was the driving force for the small price surge at the end of February. The upcoming week is going to be a busy one in terms of economic data releases from the country. The Balance of Trade, foreign currency reserves, and inflation-rate statistics are all things that are anticipated to be released.

March Zheng, the co-founder and managing partner of Bizantine Capital, stated in a note to CoinDesk that “China’s opening is a positive factor for the world’s economy, which infers that certain Animal spirits are back in Asia.” Zheng’s statement was made in response to the fact that “China’s opening is a positive factor for the world’s economy.”

According to Zheng, the so-called animal spirits might result in an upsurge in interest for assets such as cryptocurrency. He stated that “We are of the view that it will counteract the ongoing, persistent anxieties in the U.S. equities markets as well as increasing rates.” “We are of the view that it will counterbalance the continued, persistent fears in the U.S.

 

Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Crypto is not a legal tender and is subject to market risks. Readers are advised to seek expert advice and read offer document(s) along with related important literature on the subject carefully before making any kind of investment whatsoever. Crypto market predictions are speculative and any investment made shall be at the sole cost and risk of the readers.