Bitcoin’s price deepened the retreat last week but paired most of its losses! The price is below $22,100 currently. Bitcoin breached the Fibonacci 100 support last week but retraced back above it over the weekend. The RSI dipped into the oversold zone but has returned back into the neutral zone! Bulls appear to be control currently. The needs to be seen whether bears will muster enough strength to reverse the current drive of the price up and reverse it into another test of the Fibonacci 100 support in medium term.
Markets continued the selloff on Friday precipitated by the Wednesday disclosure of SVB Financial Group, a Silicon Valley-focused financial company, that it lost $1.8 billion following securities sales to raise funds against the background of declining customer deposits. Wall Street is in retreat currently despite a statement by US financial authorities on Sunday all depositors, including those whose funds exceed the maximum government-insured level, will be made whole. Meanwhile US Treasury Department considers 30% excise tax on crypto mining firms and JPMorgan is ending its banking relationship with Gemini, the cryptocurrency exchange while Silvergate Bank will "voluntarily liquidate" its assets and wind down operations.
President Joe Biden unveiled his 2023 budget proposal on Thursday which includes US Treasury Department proposal of a 30% excise tax on the cost of powering crypto mining facilities. These companies would be required to report how much electricity they use and what type of power was employed. The tax would be phased in over the next three years, increasing 10% each year.
There were reports last Wednesday banking giant JPMorgan is ending its banking relationship with the cryptocurrency exchange Gemini. JPMorgan took on Gemini as customer in 2020. However Gemini's loss of one major banking partner likely does not leave it without a banking support as the company has relationships with other banks, including State Street, according to the exchange's website.
At the same time the Silvergate Bank, a lender that helped customers move money in and out crypto, announced it would "voluntarily liquidate" its assets and wind down operations after informing the prior week it would delay filing its annual 10-K report. The collapse of Silvergate Bank weighed on crypto market: the transfer volume, denominated in Bitcoin, was down 35% over the 24 hours after the announcement, according to CryptoQuant data.