BTC Faces the Risk of Sub-$23,000 on Banking Sector Jitters
Even though odds of a 50-basis point Fed rate increase were lessening, Bitcoin halted a four-day winning run on Wednesday. The focus is still on the financial industry.

1.67% less people bought bitcoin (BTC) on Wednesday. Bitcoin finished the day at $24,321, partially erasing a rise of 2.28% from Tuesday. An important four-day victory run came to an end.
Following an erratic morning, Bitcoin increased to a midday peak of $25,324 before going backward.
Bitcoin declined to a late-afternoon low of $23,931 after failing to surpass the First Significant Resistance Line (R1) at $26,156. However, Bitcoin found late support to end the day at $24,321, avoiding the First Significant Support Line (S1) at $23,687.
Bank Equities and Bitcoin Dropped Due to Risk Aversion
On Wednesday, the financial markets around the world suffered as investors' focus shifted back to the banking industry.
From US smaller banks, investors' attention has moved to Credit Suisse. When Credit Suisse's biggest stockholder, the Saudi National Bank, announced it would no longer offer financial support, the stock price fell to a new record low. Credit Suisse lost 24.24% of its value on Wednesday, closing the day at CHF1.70.
The news caused the US and European stock markets to plunge, which negatively impacted Bitcoin (BTC) and the larger crypto market.
On Wednesday night, the Swiss National Bank provided market comfort by saying it would add more money if necessary. Credit Suisse satisfies all capital and liquidity criteria, according to the Swiss central bank, which also made this point.
The speculation and remarks about a less active Fed interest rate increase gave the declines some late assistance.
Indicators of the US economy also reduced the likelihood of an active Fed. Retail sales and trade inflation rates in the US disappointed. In February, the product price index decreased by 0.1% as opposed to the expected 0.3% rise. Store sales numbers for February were even worse than expected, declining by 0.4% instead of the expected 0.3%. In January, retail revenue increased by 3.2%.
The figures were strong enough to support a 25-basis point Fed rate increase in March and increase the likelihood of a rate rise delay. We also anticipate that the Fed will take into account how raising interest rates will affect the banking industry, with Silicon Valley Bank (SIVB) and Signature Bank (SBNY) being the direct casualties of the Fed's dedication to achieving its inflation goal.
The Dow and S&P 500 suffered declines of 0.87% and 0.70%, respectively, while the NASDAQ Composite Index increased by 0.05% on Wednesday. The NASDAQ mini gained 19.25 points this morning.
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