The market of cryptocurrencies it seems not to find the rebound and extends the drop that started last week and only had an exception on Sunday.
This Tuesday, March 7, the leading cryptocurrency, Bitcoin, falls 1% and operates at US$22,341. This is how he maintains his departure from what was believed to be his new apartment of US $ 23,000.
ethereum for its part, it loses 1.2% and trades at u$s1,559. The rest of the cryptocurrencies show falls of up to 2.3%, while the exception shows it Ripplewhich climbs 3%.
Cryptocurrencies are still experiencing the consequences of the poor performance of Silvergatethe first bank friendly to digital assets, which asked to postpone the presentation of its balance sheet, which was not well received by operators.
In parallel, the president of the Fed, Jerome Powell, declared this Tuesday in favor of continuing with the rate hike and anticipated that it will be higher than what the market expected. A strengthening of rates by the United States may move capital away from risky assets.
Why did the Silvergate scandal affect cryptocurrencies?
The crash of the crypto bank Silvergate wiped out the optimism in the market. The delay in publishing its results and the role of FTX’s bankruptcy as well as its partner status with Binance worried investors.
Fears naturally resurfaced just when it seemed like cryptocurrency was overtaking the FTX debacle. The question now is how far the domino effect will spread and how far it will undermine trust in the sector. BTC had already been struggling to overcome the resistance of 24,500-25,500 dollars and this has made it much more difficult, ”says Craig Erlam, a senior analyst at Oanda in dialogue with Bolsamanía.
Key week for the markets
The appearance of Jerome Powell, The president of the Federal Reserve (Fed), before the Senate this Tuesday, deepened the downward trend since he assured that the rate increases will be higher than expected given the persistence of inflation and the commitment of the monetary entity to consolidate inflation around 2%.
Source: Ambito
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