Bitcoin Rises as Silicon Valley Bank Depositors Get Regulatory Lifeline
- BTC’s price jumps by almost 10% in the last 24 hours.
- This is due to the decision of US regulators to protect everyone customer deposits at failed Silicon Valley Bank (SIVB).
Following decision by the US Department of the Treasury, the Federal Reserve and the Federal Deposit Insurance Corporation (FDIC) to restore all customer deposits at failed Silicon Valley Bank (SVB), Bitcoins [BTC] The price rose by almost 10% in the last 24 hours.
On March 11, BTC’s price suffered a significant drop below $20,000 following a mass withdrawal of funds by clients of SVB.
As a result, the California Department of Financial Protection and Innovation shut down the bank on the same day. This led to the de-pegging of various stablecoins and other associated cryptocurrencies.
Read Bitcoin [BTC] Price prediction 2023-24
However, improved sentiment returned to the market when federal regulators announced in a joint statement on March 12 the approval of “actions that enable the FDIC to complete actions in a manner that fully protects all depositors” in the failed bank.
Traders are flocking to the BTC market
Changing hands at $22,422.56 at press time and with a price jump of 9% in the past 24 hours, BTC recorded a corresponding increase in trading volume over the same period.
Per data from CoinMarketCap, the coin’s trading volume increased by 40%. A jump in an asset’s trading volume with a price rise to show is taken as a bullish sign indicating improved positive sentiment and continuation of the uptrend.
Data from Sentiment confirmed the positive sentiment that remained in the BTC market at press time. The coin’s weighted sentiment was positive 7.114% at the time of writing, indicating that investors believed in the continued growth in the asset’s price.
Furthermore, BTC’s price movement assessed on a 12-hour chart revealed a pattern of increasing coin accumulation. Important momentum indicators such as the Relative Strength Index (RSI) and the Money Flow Index (MFI) rested above their neutral lines in uptrend positions.
This suggested that the coin accumulation exceeded the distribution at press time. BTC’s RSI was 55.49, while the MFI was 51.90.
Likewise, Chaikin Money Flow (CMF) reclaimed its place in positive territory, posting a value of 0.02 at press time. A positive CMF value is a bullish sign that suggests increased liquidity needed to increase the value of an asset.
Source: BTC/USDT on TradingView
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Be alert
Meanwhile, pseudonymous CryptoQuant analyst Gale Blockk assessed BTC’s unrealized gains/losses and found that the metric’s next direction would determine whether or not the BTC market would suffer another capitulation.
In terms of the unrealized profit/loss calculation, a value above zero indicates that most investors are in profit, while a value below zero implies a loss.
In the current market, “after two heavy capitulation phases in the BTC market, the price is testing level 0 of this metric,” noted Crazzy Blockk.
According to the analyst:
“If the bitcoin price can maintain this level and the profitability of the bitcoins in the holders’ pockets starts to rise, the mining phase will occur. In this case, the bitcoin price can rise again. If the net unrealized profit/loss metric, based on the owners’ real value, continues to decline, there will be a possibility of a third capitulation phase or another heavy pain in the market.”
