A new report by the Congressional Research Service (CRS) has found that crypto losses did not cause the collapse of Silicon Valley Bank and Signature Bank, or even Silvergate. It was the fear of exposure to cryptocurrencies that was the driving force behind the bank run.
CRS, a non-partisan agency that acts as a trusted resource for members of Congress, released a report on Tuesday: “The Role of Cryptocurrency in the Failures of Silvergate, Silicon Valley and Signature Banks.”
The report contradicts the popular narrative that bank failures were due to significant exposure to FTX and other failed crypto companies. The reason was also not losses from their own crypto products. Even if it was recognized that 90% of Silvergate deposits came from crypto customers at the time of its collapse, which actually fell from over 98% at the end of 2021.
Even Silvergate’s Bitcoin-backed loans, which the report said were perceived as “risky” due to Bitcoin’s volatility, performed “as expected, with no losses or forced liquidations,” according to company CEO Alan Lane during a January 17 conference call with the SEC.
“The perception of the bank’s riskiness due to its exposure to cryptocurrencies may have prompted non-cryptocurrency companies/individuals to make significant withdrawals”, CRS wrote in report.
Technical Market Outlook:
Recently the BTC/USD pair intraday volatility increased significantly, but no major support or resistance level was broken. Any violation of the support level, like a breakout lower in impulsive fashion, will open the road towards the technical support seen at $25,250. The momentum on H4 time frame chart is now strong and positive, so the bulls are trying to retrace as much territory as possible. First target is seen at 38% Fibonacci retracement at $28,529, then 50% retracement seen at $29,013 and finally 61% retracement seen at $29,461.
Weekly Pivot Points:
WR3 – $28,779
WR2 – $28,222
WR1 – $27,931
Weekly Pivot – $27,661
WS1 – $27,272
WS2 – $27,102
WS3 – $26,544
Trading Outlook:
The bulls broken above the gamechanging level located at $25,442, so now the mid-term outlook for BTC is bullish. The next target for bulls is seen at the level of $32,350. As long as the level of 19,572 is not clearly violated, there is a chance for a long-term up trend to continue.
The material has been provided by InstaForex Company – www.instaforex.com
Crypto Industry News:
A new report by the Congressional Research Service (CRS) has found that crypto losses did not cause the collapse of Silicon Valley Bank and Signature Bank, or even Silvergate. It was the fear of exposure to cryptocurrencies that was the driving force behind the bank run.
CRS, a non-partisan agency that acts as a trusted resource for members of Congress, released a report on Tuesday: “The Role of Cryptocurrency in the Failures of Silvergate, Silicon Valley and Signature Banks.”
The report contradicts the popular narrative that bank failures were due to significant exposure to FTX and other failed crypto companies. The reason was also not losses from their own crypto products. Even if it was recognized that 90% of Silvergate deposits came from crypto customers at the time of its collapse, which actually fell from over 98% at the end of 2021.
Even Silvergate’s Bitcoin-backed loans, which the report said were perceived as “risky” due to Bitcoin’s volatility, performed “as expected, with no losses or forced liquidations,” according to company CEO Alan Lane during a January 17 conference call with the SEC.
“The perception of the bank’s riskiness due to its exposure to cryptocurrencies may have prompted non-cryptocurrency companies/individuals to make significant withdrawals”, CRS wrote in report.
Technical Market Outlook:
Recently the BTC/USD pair intraday volatility increased significantly, but no major support or resistance level was broken. Any violation of the support level, like a breakout lower in impulsive fashion, will open the road towards the technical support seen at $25,250. The momentum on H4 time frame chart is now strong and positive, so the bulls are trying to retrace as much territory as possible. First target is seen at 38% Fibonacci retracement at $28,529, then 50% retracement seen at $29,013 and finally 61% retracement seen at $29,461.
Weekly Pivot Points:
WR3 – $28,779
WR2 – $28,222
WR1 – $27,931
Weekly Pivot – $27,661
WS1 – $27,272
WS2 – $27,102
WS3 – $26,544
Trading Outlook:
The bulls broken above the gamechanging level located at $25,442, so now the mid-term outlook for BTC is bullish. The next target for bulls is seen at the level of $32,350. As long as the level of 19,572 is not clearly violated, there is a chance for a long-term up trend to continue.
The material has been provided by InstaForex Company – www.instaforex.com
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