Week ahead: Crypto markets stay flat after Silvergate crisis, an opportunity in disguise or troubled waters?

Bitcoin has shown a large disconnect from the stock market over the last few days, signaling a disruption of positive correlation. Fed Chair Jerome Powell will be testifying in front of congress regarding the economic conditions of the US, among other things. Non-farm Payrolls will be announced after an unusually high uptick in the last jobs report, which will play a pivotal role in Fed’s next interest rate decision. Cryptocurrency markets saw a sudden sell-off on March 2 as a slew of companies, including Coinbase, Paxos, Galaxy and others, dropped Silvergate as their banking partner. As a result, the banking giant’s stock price fell by 66% between March 1 and March 3. As Bitcoin and Ethereum price trade aimlessly, there is no directional bias whatsoever for the general cryptocurrency markets after the Silvergate crisis. While looking at this event through a keyhole might reveal an obvious bearish outlook, taking a step back shows that this nosedive could potentially have an unintended yet bullish effect on the crypto markets for the long term. Also read: First mover Asia: Bitcoin is stuck between Silvergate and China Crypto markets disconnect from traditional Due to the Silvergate fiasco, things have changed drastically for […]

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