updraftplus domain was triggered too early. This is usually an indicator for some code in the plugin or theme running too early. Translations should be loaded at the init action or later. Please see Debugging in WordPress for more information. (This message was added in version 6.7.0.) in /home/aonyeani76/cryptocurrencypanther/wp-includes/functions.php on line 6131hustle domain was triggered too early. This is usually an indicator for some code in the plugin or theme running too early. Translations should be loaded at the init action or later. Please see Debugging in WordPress for more information. (This message was added in version 6.7.0.) in /home/aonyeani76/cryptocurrencypanther/wp-includes/functions.php on line 6131wpforms-lite domain was triggered too early. This is usually an indicator for some code in the plugin or theme running too early. Translations should be loaded at the init action or later. Please see Debugging in WordPress for more information. (This message was added in version 6.7.0.) in /home/aonyeani76/cryptocurrencypanther/wp-includes/functions.php on line 6131With the collapse of SVB, many commentators have been echoing the phrase that no firm is “too big to fail.”
Uncertainty has continued to grip active players in the United States stock market with futures tied to major indices shedding off significant gains on Monday. The futures tied to the Dow Jones Industrial Average (INDEXDJX: .DJI) shed 276 points atop a 0.9% slump.
To complement the bearish trend, the futures tied to the S&P 500 Index (INDEXSP: .INX) also dropped by 1% with that linked to the Nasdaq-100 dropping by 0.7% at the time of writing. The losses being experienced are a reflection of the shockwaves in the US banking sector and the fear of investors in relation to what the aftermath might be.
Silicon Valley Bank (SVB) remains the major concern for many as the foldup of the firm has unsettled the tech ecosystem that it supports. The sigh of relief was introduced following the joint statement from the Treasury Department, the US Federal Reserve, and the Federal Deposit Insurance Corporation (FDIC) about the state of SVB and how to move forward.
The regulators said they will not protect SVB equity holders with a bailout but that the bank’s depositors will be able to gain access to their money, starting today.
“Today we are taking decisive actions to protect the U.S. economy by strengthening public confidence in our banking system,” the joint statement reads.
The trio also said a new funding program will be created to give banks and financial institutions the needed liquidity that will be able to protect investors’ deposits. According to Treasury Sec Janet Yellen, the sort of bailout that was issued prior to the 2008 financial crisis has now stopped as the government does not need to hand out incentives to firms that fail based on bad business calls made.
With the collapse of SVB, many commentators have been echoing the phrase that no firm is “too big to fail”.
In light of this, top banking giants like Charles Schwab Corporation (NYSE: SCHW) have come out to reassure their stakeholders that the firm has robust liquidity to meet its withdrawal obligations. The bank said though it is recording outflows, clients are pushing the funds into other aspects of the bank.
“Client bank sweep cash outflows in February were about $5 billion lower than January and March month-to-date daily average outflows are tracking consistent with February,” the bank said. “Importantly, these outflows reflect a continuation of client decisions to reallocate a portion of their cash into higher-yielding cash alternatives within Schwab.”
Besides Charles Schwab, every business is now granting reassurances to their customers across the board. Most especially, President Joe Biden is also commenting on the safety of funds in the American banking sector thus fueling a targeted attempt is being made to inject positivity that can help upturn the bearish moves in stock futures.
Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture.
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Bitcoin price has been on the continuous rise for the past four days with 13% gains. BTC has breached the $40,000 psychological level. On Balance Volume (OBV) shows rising volume as the price scales up after a few weeks of consolidation.
As of press time, BTC/USD is trading at $43,852, up 3.39% 24 hours.
On the daily chart, BTC is hovering just above the 50 DMA at $42,834.45. However, BTC faces strong resistance near multi-week resistance near $44,000. Now, it would be interesting to watch if the price could sustain and breach away the mentioned level.
The Daily Relative Strength Index (RSI) reads at 60 inspired by the current price action. If it continued to move north then investors could retest the December 29 high of $48,149.58.
BTC plummet nearly 50% in January from an ATH high of $67,566 made in November. The world’s largest cryptocurrency rose 28% from the low of $33,495 made on January 24.
A decisive close above the mentioned high level would motivate investors to take out the $52,347.36 horizontal resistance line.
On the flip side, if the price could not sustain the current high level and as the rally fizzled out then BTC could retrace toward the immediate support level that is placed around $39,481.
Furthermore, a breakdown of the mentioned level will blow BTC toward $34,752. The next market participant could look out for the lows made in July 2021 placed at $29,301.56.
Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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