Bitcoin Price Prediction as Silicon Valley Bank Collapse Sends Shockwaves Through Global Markets – Can BTC Recover?
Bitcoin (BTC) and Ethereum (ETH) managed to halt their downward trend and experienced a rise in value above $20,000 and $1,400, respectively, on early Saturday morning. However, this surge can be attributed to the weaker US dollar, which turned negative after the February labor data showed slower wage growth, indicating a decrease in inflationary pressures.
The statement indicated that if the Federal Reserve reduces the pace of interest rate hikes, it could potentially make the US dollar less attractive, leading to increased demand and higher prices for cryptocurrencies.
It is essential to highlight that the cryptocurrency market is known for its high volatility, with frequent price fluctuations. In the previous week, Bitcoin and Ethereum experienced considerable losses, with BTC dropping 10.88% and ETH losing 10.94% of its value.
The losses incurred by Bitcoin and Ethereum have resulted in the global cryptocurrency market cap falling below $900 billion, reaching $890 billion. However, there are signs that the decline may be slowing down, with BTC showing the potential to recover some of its lost ground.
This reversal may be attributed to the weakened US dollar and the recent weaker-than-expected US jobs data. It is important to note that the cryptocurrency market is highly volatile, and price fluctuations are expected.
Recent reports indicate that Silicon Valley Bank, a significant financial institution for venture capital firms, is facing a liquidity crisis. This development has sparked concerns about the potential broader financial implications, leading to a decline in the value of cryptocurrencies.
It is important to note that Silicon Valley Bank is a major financial institution used by many venture capital firms, which
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