{"id":10831,"date":"2023-03-10T17:29:45","date_gmt":"2023-03-10T17:29:45","guid":{"rendered":"http:\/\/cryptoheretostay.com\/?p=10831"},"modified":"2023-03-10T17:29:45","modified_gmt":"2023-03-10T17:29:45","slug":"bitcoin-battles-20k-as-trader-calls-bank-chaos-2008-all-over-again","status":"publish","type":"post","link":"https:\/\/cryptoheretostay.com\/?p=10831","title":{"rendered":"Bitcoin battles $20K as trader calls bank chaos \u20182008 all over again\u2019"},"content":{"rendered":"<script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"crypto\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script>\n<p>Bitcoin (BTC) struggled to reclaim $20,000 support at the March 10 Wall Street open as fears mounted over Silicon Valley Bank (SVB) contagion.<\/p>\n<p><em>BTC\/USD 1-hour candle chart (Bitstamp). Source: TradingView<\/em><\/p>\n<h2>Trader targets $18,000 BTC price<\/h2>\n<p>Data from Cointelegraph Markets Pro and TradingView\u00a0followed BTC\/USD as it nursed fresh losses, reaching $19,569 on Bitstamp.\u00a0<\/p>\n<p>The pair had seen further downside prior to the open as embattled SVB Financial saw another 60% wiped off its stock price.<\/p>\n<p>In a move that\u00a0mimicked crypto exchange banking partner Silvergate, SVB also began to spark knock-on effects for non-United States banks on the day.<\/p>\n<p>For Cointelegraph contributor Micha\u00ebl van de Poppe, founder and CEO of trading firm Eight, the writing was on the wall.<\/p>\n<p>\u201cFirst it was Silvergate, then Silicon Valley Bank and now First Republic Bank. All sinking massively on the markets. It\u2019s 2008 all over again,\u201d he summarized.<\/p>\n<p>With that, U.S. equities started the March 10 session in the red as nervous traders waited to see the full extent of the SVB contagion.<\/p>\n<p lang=\"en\" dir=\"ltr\">Is a banking crisis beginning to hit?<br \/>Japanese banks DOWN 5%-6.2%.<br \/>Bank of America DOWN 6.2%<br \/>Barclays DOWN 6.2%<br \/>JPM DOWN 5.4%<br \/>Wells Fargo DOWN 6.13%<br \/>The dogs which are not barking in the night are Eurozone G-SIBs&#8230; Yet!<\/p>\n<p>\u2014 Alasdair Macleod (@MacleodFinance) March 10, 2023<\/p>\n<p>\u201cBoth Silvergate and Silicon Valley seemingly invested in low yield treasuries before the Fed tightening cycle&#8230; treasuries that nobody would want to buy now with \u2018risk free\u2019 treasuries at 5% directly from the government,\u201d part of comments by trader and analyst Scott Melker stated.<\/p>\n<p>\u201cThey were forced to sell at a steep discount, taking on massive losses. This further shakes the market faith, causes more withdrawals and leads to insolvency.\u201d<\/p>\n<p>Melker said that the setup was a \u201cslippery slope.\u201d<\/p>\n<p>In terms of BTC price action, van de Poppe, meanwhile, eyed levels as low as $18,000 for a potential long entry. Above $20,000, on the other hand, was now a short opportunity.<\/p>\n<p lang=\"en\" dir=\"ltr\">Levels I&#8217;d be looking at with #Bitcoin:<\/p>\n<p>&#8211; Potential shorts around $20.6K and\/or $21.4K.<br \/>&#8211; Potential longs at $18.1-18.6K including bull. divs and\/or HL confirmation. pic.twitter.com\/CifRSlaHQW<\/p>\n<p>\u2014 Micha\u00ebl van de Poppe (@CryptoMichNL) March 10, 2023<\/p>\n<h2>Commentators see Fed pivot pressure building<\/h2>\n<p>A silver lining came in the form of what markets commentator Holger Zschaepitz described as \u201cmixed\u201d U.S. jobs data, helping allay fears of a significant policy shift by the Federal Reserve.<\/p>\n<p><strong><em>Related:\u00a0Why is Bitcoin price down today?<\/em><\/strong><\/p>\n<p>\u201cTraders are now pricing in a 25bps hike from the Fed in March following today\u2019s jobs data. Previously, 50bps was priced,\u201d popular analytics account Tedtalksmacro added on Twitter, also calling the data a \u201cmixed bag.\u201d<\/p>\n<p>Data from CME Group\u2019s FedWatch Tool confirmed the switch-around in market expectations for the upcoming Federal Open Market Committee (FOMC) meeting due March 22.<\/p>\n<p><em>Fed target rate probabilities chart. Source: CME Group<\/em><\/p>\n<p>For some, however, the extent of the SVB crisis was reason to believe that the Fed would have no choice but to abandon its monetary tightening and \u201cpivot\u201d on interest rate hikes.<\/p>\n<p>\u201cSVB dealing with a full blown run on the bank. The bad news is this is going to accelerate very quickly into a systemic crisis,\u201d crypto entrepreneur David Bailey reacted. <\/p>\n<p>He added, \u201cThe good news is the Fed will have no choice but to pivot imminently or risk imploding the entire financial system.\u201d<\/p>\n<p class=\"post-content__disclaimer\">The views, thoughts and opinions expressed here are the authors\u2019 alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.\n<\/p>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><br \/>\n<br \/><script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"bitcoin\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script><br \/>\n<br \/><a href=\"https:\/\/cointelegraph.com\/news\/bitcoin-battles-20k-as-trader-calls-bank-chaos-2008-all-over-again\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Bitcoin (BTC) struggled to reclaim $20,000 support at the March 10 Wall Street open as fears mounted over Silicon Valley Bank (SVB) contagion. BTC\/USD 1-hour candle chart (Bitstamp). Source: TradingView Trader targets $18,000 BTC price Data from Cointelegraph Markets Pro and TradingView\u00a0followed BTC\/USD as it nursed fresh losses, reaching $19,569 on Bitstamp.\u00a0 The pair had [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":10832,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_wp_rev_ctl_limit":""},"categories":[2],"tags":[],"class_list":["post-10831","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bitcoin-news"],"_links":{"self":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/10831","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=10831"}],"version-history":[{"count":1,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/10831\/revisions"}],"predecessor-version":[{"id":10833,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/10831\/revisions\/10833"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/media\/10832"}],"wp:attachment":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=10831"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=10831"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=10831"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}