Bitcoin and Ether have begun the week with a steady performance, with Bitcoin at $22,463, up 0.6% on-day, and Ether at $1,569, up 0.1%. Experts suggest that the market is currently at a crucial point where it needs to decide how much it should factor in Silvergate's crypto failure and also consider the positive economic data coming out of China. Although the Silvergate issue is not leading to broad contagion, Bitcoin may retrace back down to $20,000 or even $18,000 to retest those lows. However, it seems that the worst phase for Bitcoin is over as the depths of the winter are behind us. Meanwhile, the economic data from a reopened China might reinforce the "China narrative" that fueled the mini price rally in February.
This week, the release of economic data such as Balance of Trade, foreign exchange reserves, and inflation-rate data from China is expected. This could lead to an increase in appetite for assets like crypto as animal spirits are back in Asia, indicating a positive factor for the world's economy. Despite the continued, persistent fears in the US equity markets and rising rates, animal spirits could counterbalance these negative factors.