BTC and Sub-$18,500 in the Hands of USD Coin and Silicon Valley Bank

Bitcoin (BTC) increased by 1.62% on Saturday. Bitcoin finished the day at $20,529, reversing a drop of 0.88% from Friday. Bitcoin halted a five-day loss run while revisiting sub-$20,000 for the second occasion since January 14.

Bitcoin reached a peak of $20,789 early in the day thanks to a positive start to the day. Before falling to a mid-morning low of $19,863, Bitcoin breached the First Significant Resistance Line (R1) at $20,525 before continuing to decline. But after avoiding the First Significant Support Line (S1) at $19,735, Bitcoin (BTC) recovered to close the day at $20,529.

Silicon Valley Bank and US Dollar Currency On a choppy Saturday, delivered Session

Fed Investors watched reports on Silicon Valley Bank and the USD Currency (USDC) de-peg on Saturday as fear took a backseat.

On Saturday, word spread through the media that Circle planned to use company funds to fill the Silicon Valley Bank gap. In a statement regarding Silicon Valley Bank and USDC, Circle noted that "it is conceivable that SVB may not return 100% and that any return may take some time, as the FDIC gives IOUs (i.e., receivership certificates) and early payments to account holders."

The SVB statement continued, "In such a situation, Circle will stand behind USDC and fill any deficit using company resources, engaging external capital if necessary, as mandated by law under stored-value money transfer legislation.

Although the announcement provided assistance, USDC was still unpegged from the dollar this morning at $0.9705.

Updates on Silicon Valley Bank's (SIVB) collapse, however, were less supportive of cryptocurrencies. Buyers won't get more information until Monday. An extraordinary conference called by the Federal Reserve on Monday may provide insight into the ability of authorities to compensate SVB debtors. The risk of SVB spread will stay high before the FOMC conference.

Updates will automatically have a significant impact on the US futures market and the cryptocurrency market given the current circumstances and the danger to other US regional institutions.

The Dow and S&P 500 both experienced declines on Friday, with the NASDAQ Composite Index declining by 1.76% and 1.45%, respectively.

The Coming Day

Today's primary topics will probably continue to be reports on Silicon Valley Bank and the USD coin. The NASDAQ mini will serve as a reference for buyers in the last hour as they deal with the possibility of additional bank shutdown.

The markets should nonetheless keep an eye on Binance and FTX news and developments related to the current SEC v. Ripple lawsuit.

Bitcoin Market Movement (BTC)

Bitcoin was down 0.48% to $20,431 this morning. Bitcoin had a conflicted start to the day, rising to a high of $20,562 before dropping to a low of $20,379.