Bitcoin falls below $20,000 amid Silvergate liquidation plans, Silicon Valley Bank crisis
Yahoo Finance’s Jared Blikre breaks down how bitcoin is moving amid crypto industry turmoil.
Video Transcript
INES FERRE: Bitcoin is sinking below $20,000 today, to its lowest level in nearly two months as Silvergate’s liquidation and wider stock market losses hit the digital asset. Yahoo Finance’s Jared Blikre is at the YFi Interactive with the details. Jared.
JARED BLIKRE: Yes, let’s first check out the price chart here. This is Bitcoin’s price reaction. We’ve got a number of moving parts. Let’s just start with today. Or actually, this is five days. So we can go back in time on Tuesday and Wednesday. That’s kind of when we got more information about what Silvergate was going to do, and it’s winding down its operations. This was a funding bank for the crypto enterprises, a lot of which have failed. And this is just kind of a prelude to what happened in Silicon Valley yesterday with Silicon Valley Bank.
Now, we also had Powell speaking Tuesday and Wednesday. It’s hard to see here, but this little spike down came on Powell’s testimony. And then it was kind of down– a slow drift down from there, the bottom really falling out yesterday. In the context of the larger price rally that we had seen earlier in the year, now looking pretty much in jeopardy. This year chart shows that essentially Bitcoin had been trading in a very large range or a long range.
It looks like the touch isn’t annotating right now, but the 25,000 level was something that we reached last August. And then down here, we have the bottom. What is that– 15,000, 16,000? So would be very easy to see this $15,000, $16,000 level traced out right here. Until we move above 25,000, probably not going to mean much in terms of price action, and 30,000, what you see right here, that is the real delineator.
Now, if I sort by performance here– it looks like my screen is frozen, and that’s why we’re not annotating. So it looks like I’ll just have to wrap this up here. Lots going on in the market also with Bitcoin. I would imagine the Bitcoin stocks, as well crypto exposed stocks especially, getting hit today, guys.
JULIE HYMAN: All right, there’s a chart for you behind you.
JARED BLIKRE: There we go. Thank you.
JULIE HYMAN: That’s just the five-day. I don’t know if we can turn on this one either. Aw, Jared without drawing ability.
JARED BLIKRE: I know. I’m– my hands are tied.
JULIE HYMAN: Jared, thank you so much.