Bitcoin on March 10, 2023: Attack on banks

Bitcoin (BTC) price drops below $20,000. The collapse of American banks is impacting the crypto markets. According to traders, the declines could continue in the coming days.

Bitcoin Price Tests Low of Monthly Macro Range

Bitcoin price drops to $19,592 today, March 10, 2023. The cryptocurrency is trading at $19,963 at the time of writing this article. Its price is currently recording a daily loss of 2.10%.

Trader Rekt Capital shared a chart showing Bitcoin “testing the bottom of its current monthly range” $19,973 – $23,303.

The trader recalls that a “fallback movement below this range” has already taken place in the past. Bitcoin could therefore continue its fall under this tidy this time. Rekt Capital even believes that the transformation of $19,900 into resistance, “ could cause a collapse “.

Banks in trouble, the Fed still hawkish

Bitcoin is undergoing series of bad news both in new finance and in traditional finance. The founder of the Eight trading company, Michaël van de Poppe, evoked the tremors affecting Silvergate, Silicon Valley Bank and First Republic Bank.

Michaël van de Poppe indicates that “all these banks have sunk massively in the markets”. The founder of Eight compares the current situation to that of 2008.

The day is also marked by the reproaches of the traders, against the monetary tightening made by the US Federal Reserve (FED). According to Michaël van de Poppe, the policy of the FED East behind “the fact that Silicon Valley Bank is about to fall”.

However, will the current context (finally) push the Fed to put an end to to hikes in the federal funds rate, in order to prevent a large-scale financial and economic crisis? This week, Fed Chairman Jerome Powell hinted that the next rate hike will be higher than expected.

Does this return below $20,000 herald an extension of the crypto winter? The year 2023 started with a bullish rally, which allowed the cryptocurrency to attack its 200-week moving average, around $25,000. After this bull run, the end of the first quarter seems rather to play in favor of the bears.