Bitcoin battles $20K as trader calls bank chaos '2008 all over again'

Bitcoin (BTC) struggled to reclaim $20,000 enactment astatine the March 10 Wall Street unfastened arsenic fears mounted implicit Silicon Valley Bank (SVB) contagion.

BTC/USD 1-hour candle illustration (Bitstamp). Source: TradingView

Trader targets $18,000 BTC price

Data from Cointelegraph Markets Pro and TradingView followed BTC/USD arsenic it nursed caller losses, reaching $19,569 connected Bitstamp. 

The brace had seen further downside anterior to the unfastened arsenic embattled SVB Financial saw different 60% wiped disconnected its banal price.

In a determination that mimicked crypto speech banking spouse Silvergate, SVB besides began to spark knock-on effects for non-U.S. banks connected the day.

For Cointelegraph contributor Michaël van de Poppe, laminitis and CEO of trading steadfast Eight, the penning was connected the wall.

"First it was Silvergate, past Silicon Valley Bank and present First Republic Bank. All sinking massively connected the markets. It's 2008 each implicit again," helium summarized.

With that, U.S. equities started the March 10 league successful the reddish arsenic tense traders waited to spot the afloat grade of the SVB contagion.

Is a banking situation opening to hit?
Japanese banks DOWN 5%-6.2%.
Bank of America DOWN 6.2%
Barclays DOWN 6.2%
JPM DOWN 5.4%
Wells Fargo DOWN 6.13%
The dogs which are not barking successful the nighttime are Eurozone G-SIBs... Yet!

— Alasdair Macleod (@MacleodFinance) March 10, 2023

"Both Silvergate and Silicon Valley seemingly invested successful debased output treasuries earlier the Fed tightening cycle... treasuries that cipher would privation to bargain present with "risk free" treasuries astatine 5% straight from the government," portion of comments by trader and expert Scott Melker stated.

"They were forced to merchantability astatine a steep discount, taking connected monolithic losses. This further shakes the marketplace faith, causes much withdrawals and leads to insolvency."

Melker said that the setup was a "slippery slope."

In presumption of BTC terms action, Van de Poppe meantime eyed levels arsenic debased arsenic $18,000 for a imaginable agelong entry. Above $20,000, connected the different hand, was present a abbreviated opportunity.

— Michaël van de Poppe (@CryptoMichNL) March 10, 2023

Commentators spot Fed pivot unit building

A metallic lining came successful the signifier of what markets commentator Holger Zschaepitz described arsenic "mixed" U.S. jobs data, helping allay fears of a important argumentation displacement by the Federal Reserve.

Related: Why is Bitcoin terms down today?

"Traders are present pricing successful a 25bps hike from the Fed successful March pursuing today’s jobs data. Previously, 50bps was priced," fashionable analytics relationship Tedtalksmacro added connected Twitter, besides calling the information a "mixed bag."

Data from CME Group's FedWatch Tool confirmed the switch-around successful marketplace expectations for the upcoming Federal Open Market Committee (FOMC) gathering owed March 22.

Fed people complaint probabilities chart. Source: CME Group

For some, however, the grade of the SVB situation was crushed to judge that the Fed would person nary prime but to wantonness its monetary tightening and "pivot" connected involvement complaint hikes.

"SVB dealing with a afloat blown tally connected the bank. The atrocious quality is this is going to accelerate precise rapidly into a systemic crisis," crypto entrepreneur David Bailey reacted.

He added that "The bully quality is the Fed volition person nary prime but to pivot imminently oregon hazard imploding the full fiscal system."

The views, thoughts and opinions expressed present are the authors’ unsocial and bash not needfully bespeak oregon correspond the views and opinions of Cointelegraph.