As March progresses, cryptocurrency markets have been rocked by some major news events. Bitcoin, ethereum and other digital assets have all fallen to two-month lows, due to a collapse in Silvergate Bank and other catalysts. With three weeks left in the month, what could be in store?
Present Market State
Today, the U.S. released its non-farm payrolls figures, which surprisingly came in at 311,000, better than the 205,000 forecast. Nevertheless, this news has had minimal impact on the crypto market.
This is due to the closure of two sister banks, Silvergate and Silicon Valley Bank, which have both announced that they are ceasing operations. The former in particular has affected markets, due to the failure of the bank to submit its annual report to the Securities and Exchange Commission (SEC).
In addition to this, Federal Reserve chair Jerome Powell has suggested that interest rates could be raised higher than originally thought, as the fight against inflation continues.
March Outlook
These factors have all contributed to this month’s bearish wave, which has been particularly evident in the first few days of March.
At one point today, BTC/USD dropped to $19,628.25, its weakest level since January 13. This was caused by a breakout of a key support level at $20,300, and bulls have attempted to push the price back up to this point.
In the long-term, this sell-off could be beneficial for bulls, as the 14-day relative strength index (RSI) has now dropped to its lowest value since November. This suggests that a bottom may be close, or perhaps already hit.
Therefore, following a period of consolidation, bitcoin could gradually recover in the coming weeks, in advance of the next Federal Reserve rate announcement.
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