Bitcoin (BTC) and Ethereum (ETH) experienced a lack of volatility as both cryptocurrencies oscillated between gains and losses. At this point, it remains uncertain whether there will be any significant price movement over the weekend. Earlier, BTC/USD prices fluctuated wildly in a narrow range between $22,000 and $22,500.
Let’s look at the fundamental and technical side of the market.
FTX reports $8.9 billion in customer shortfalls and ‘very mixed’ assets in latest presentation to creditors
The FTX Debtors published their second Stakeholder Presentation on March 2, 2023. The presentation contains a preliminary analysis of the shortcomings of the inactive cryptocurrency exchange, which revealed a significant drawback.
The analysis showed that approximately $2.2 billion of the company’s total assets were held in FTX-linked addresses, but only $694 million were considered “A Category Assets,” which include liquid cryptocurrencies such as Bitcoin, Tether, or Ethereum.
Additionally, FTX’s current CEO, John J. Ray III, said the debtor’s efforts were significant and added that the exchange’s assets were “very mixed.”
FTX Debtors and CEO John J. Ray III released a presentation documenting the cryptocurrency exchange’s shortcomings. The report highlights the cyberattack that occurred after FTX filed for bankruptcy.
In the report, FTX’s holdings are classified into two groups: “Category A assets” and “Category B assets”. The public presentation shows a shortfall in customer funds of $8.9 billion. The report states that only a small amount of cash, stablecoins, bitcoins, Ethereum and other A-class assets remain in wallets previously linked to FTX.com. Much of the shortfall can be attributed to Alameda Research.
Uncertainty about the Silvergate bank could weaken the cryptocurrency market
After the market closed on Wednesday, Silvergate told the Securities and Exchange Commission (SEC) that it would have to delay filing its annual report as it evaluates the impact of various developments on its operations.
The delay in filing Silvergate’s annual report caused a sharp drop in the value of cryptocurrency, including the price of BTC. However, since then, the market has given mixed signals about the impact of the event. It is worth noting that the Silvergate situation has had a significant impact on the cryptocurrency market.
Silvergate Capital ( SI ) announced Wednesday night that it will delay the filing of its annual report due to losses from November’s FTX crash and various regulatory scrutiny. The news hit market sentiment, causing investors and traders to lose confidence in the stability and security of the cryptocurrency industry.
This could potentially lead to a market-wide selloff. It is worth noting that the situation in Silvergate highlights the problems and risks associated with investing in cryptocurrencies.
In addition, the delay in filing Silvergate Capital’s annual report has led to increased regulatory scrutiny of the cryptocurrency industry, which is already facing significant backlash.
This could make authorities more hesitant to grant licenses to cryptocurrency-related companies, potentially limiting the growth and expansion of the industry. The situation highlights the need for stricter regulation and greater transparency in the cryptocurrency market to ensure investor protection and stability.
Bitcoin price
Bitcoin is currently trading at $22,396 with a 24-hour trading volume of $18 billion. Technical analysis of the BTC/USD pair suggests a breakout of the symmetrical triangle pattern at $23,250. If this happens, the breakout could put the price of BTC into the $22,046 support zone.
Also, if the price breaks below this support zone, BTC could fall to the $21,450 mark.
The appearance of a bearish absorbing candle indicates a significant selling bias. However, if the candles close above this level, there may be the potential for a bounce higher with the $22,800 target or higher towards the $23,750 mark.
Ethereum price
The current market price of Ethereum (ETH) is $1,567 with a 24-hour trading volume of $6.6 billion. From a technical perspective, the ETH/USD pair has broken a symmetrical triangle, indicating potential for further selling until it reaches the $1,560 level.
If the $1,560 level is reached, ETH could reach the $1,500 mark. However, it is worth noting that there is strong resistance around the $1,620 or $1,680 levels, which could limit the price’s further decline.
