Bitcoin Price Closes Below $25k for the Second Day in a Row – Market Reversal Incoming?
The Bitcoin market has struggled to overturn $25k to a support line despite the recent spike to $26.5k earlier this week. On the Bitcoin daily chart, a bearish reversal pattern that looks identical to the inverted hammer dubbed a shooting star has formed in the past two days. Essentially, the shooting star indicates sellers have overpowered the buyers. As a result, Bitcoin price could dip further as over $211 million got liquidated from the crypto market in the past 24 hours.
Bitcoin Market and the Banking Crisis
Despite the cryptocurrency market benefiting from the banking crisis, economists warn traders could suffer from thinning liquidity. Moreover, most of the affected banks provided on and off-ramping services. Nonetheless, the Bitcoin market continues to enjoy widening inflation as the Fed prints more money to bail out the economy.
“Since the Govt. made the mistake of guaranteeing all deposits at SVB and Signature Bank, they will be forced to explicitly guarantee 100% of deposits at all banks to prevent widespread runs on solvent banks as depositors move funds to insolvent banks with full government backing,” veteran trader Peter Schiff noted.
As such, Schiff thinks the Fed should close the affected banks and discontinue further deposits to act as a warning to the rest of the banking industry.
Notably, Credit Suisse, a global investment bank and financial services firm founded and based in Switzerland, has seen its stock market plummet to new lows amid insolvency claims. While the Saudi National Bank discontinued its financial help to Credit Suisse, the distressed bank intends to borrow up to $53.68 billion from the Swiss National Bank under a covered loan facility and a short-term liquidity facility.