bitcoin
From February 24 to March 3, 2023, the value of the historically first cryptocurrency fell by 3.5%, from $23,189 to $22,366. The main decrease occurred on March 3, when news appeared about the problems of the Silvergate bank and its inability to provide data to the American regulator in time .
Source: tradingview.com
Regarding the situation with Silvergate, there are objective and subjective factors. The first is definitely a decline in the value of shares. Over the past week, they have lost about 70% in value, with a 60% drop on March 3rd. Undoubtedly, the problems of such a significant and well-known player in the crypto world could not but affect the historically first cryptocurrency.
Source: tradingview.com
On the other hand, there is a point of view according to which the Silvergate problems did not affect Bitcoin in any way and all coincidences are random. It is this opinion adheres to Pixelmatic founder and CEO, crypto enthusiast Samson Mow:
“The fall of Silvergate and the loss of their traditional banking system by exchanges does not affect bitcoin. The collapse of the fiat banking system for exchanges only means that buying / selling will move to P2P. It’s the same as in China.”
Whether Mou will be right in the long run – time will tell. In the meantime, we can state that Silvergate’s problems caused a short-term effect, and at least speculative sales are catalyzed by this fact.
The bank has problems not only with the American SEC. Many companies refuse to accept payments that go through Silvergate. One of the first to refuse was Coinbase.
Of the positive news, it is worth mentioning that Xapo Bank, based in Gibraltar, is the first in the world
implemented lightning network. Now customers of this bank will be able to make payments up to $100 without large commissions and long waiting times. True, it is possible
implement only in places where the Lightning Network is already accepted.
In terms of technical analysis, BTC is in a wide range. The support level is $21,376, the resistance level is $25,270.
Source: tradingview.com
The fear and greed index has been in the neutral zone all week and is 50 on the evening of Friday, March 3.
Ethereum
The fall of ether during the week was slightly less than that of bitcoin, and amounted to 2.62%. The coin did not manage to gain a foothold above the $1,676.8 resistance level, and the news about Silvergate only aggravated the situation.
Source: tradingview.com
For several months now, Ethereum itself has been waiting for the Shanghai fork, which was originally scheduled for mid-March. However, this week, network developers reported that the fork would not take place within the stated time frame. Shanghai is now expected to take place in early April, with the exact date to be announced later.
Well, Vitalik Buterin believes that the Ethereum ecosystem will need to carry out a lot more “work on the bugs”. At the same time, the co-founder of Ethereum assigns the main role to user experience. Developer notesthat the emphasis should be on problem situations.
From a technical analysis point of view, ETH is moving sideways. Attempts to close above the designated level of $1,676.8 were fruitless. However, it cannot be said that sellers also rule the market. For this, Ethereum must close below $1,501.
Source: tradingview.com
Solana
Solana’s SOL token lost over 8.5% in a week, dropping from $23.08 to $21.11. The coin fell five out of seven days. The exceptions were Sunday, February 26, and Wednesday, March 1. The largest decrease occurred on March 3 – more than 4%.
Source: tradingview.com
If the fall of the last days can somehow be attributed to Silvergate problems, then the fall on the 25th was due to the next problems the platform itself. For 18 hours on February 25, Solana did not process transactions. The problem could not be reliably identified, and therefore the management decided to attribute everything to the latest system update 1.14.
Anatoly Yakovenko, co-founder of Solana Labs, has already spoken about this case. In his opinion, the process of updating the platform should undergo a number of changes. The main focus should be on stability. The restart process also needs to be improved. Another direction will be the creation of a competitive group, which will include a third of the developers. Their activities will be sent to build additional traps in the validator code to find vulnerabilities in protocols.
At the moment, bearish sentiment prevails in Solana. From the highs of February 20, SOL has already lost more than 20% of its value. The nearest support level is near $19.7. The resistance level is $25.
Source: tradingview.com
It can be statedthat in the week from February 24 to March 3, most cryptocurrencies showed a negative trend in price changes. This was mainly due to the problems of Silvergate, which interacted with many large participants in the crypto industry. Apart from another crash in Solana, which was associated with the next platform update.
This material and the information in it does not constitute individual or other investment advice. The opinion of the editors may not coincide with the opinions of the author, analytical portals and experts.
Source: Bits
I am an experienced journalist, writer, and editor with a passion for finance and business news. I have been working in the journalism field for over 6 years, covering a variety of topics from finance to technology. As an author at World Stock Market, I specialize in finance business-related topics.
