Bitcoin Is Stuck Between Silvergate and China

Obervers say that the market is at something of a precipice right now. While it’s no longer the depths of crypto winter, the market has to decide how much it will continue to price in Silvergate’s crypto failure while also accounting for positive economic data from China.
It doesn't look like the Silvergate issue is leading to broad contagion. And we may have seen most of the drop associated with that news already, I wouldn't be surprised to see bitcoin retrace back down to $20,000, maybe even $18,000, to sort of retest those lows. But…it does look like the depths of the winter are behind us.

At the same time, economic data from a re-opened China, which rapidly dropped all Covid restrictions at the start of the year, might bolster the “China narrative” that fueled late February’s mini price rally. This coming week is set to be a busy one with economic data releases from the country, with Balance of Trade, foreign exchange reserves, and inflation-rate data expected.