The recent FUD (fear, uncertainty, and doubt) caused by the Silvergate Bank operations has heavily affected the crypto market, as Silvergate has been a leading bank for companies in the cryptocurrency space. As a result, the crypto market may be impacted by a series of upcoming US macro events scheduled over the next two weeks. These events have the potential to affect both stock prices and crypto prices.
Despite a US stock market rally, Bitcoin price has not recovered from the 5% drop caused by the Silvergate crisis. The Nasdaq Composite and S&P 500 have started the week positively, but the crypto market has not yet factored in the risks associated with the Silvergate crisis. However, an alternate banking mechanism or a potential bailout could help to improve the crypto market mood.
Crypto traders will need to brace themselves for a potential rollercoaster ride until the end of the week on March 22, when the US Fed’s FOMC (Federal Open Market Committee) will set a fresh funds rate based on the prevailing economic conditions in the United States. The series of events begins with Fed Chair Jerome Powell's hearing on The Semiannual Monetary Policy Report to the Congress. During the hearing, arguments related to crypto are expected to be made alongside discussion on the Fed’s outlook on monetary policy. Senator Bill Hagerty is expected to raise important questions in support of crypto, and the hearing could provide interesting outcomes in terms of the central bank’s views on the emerging market.
Following Powell’s hearing, the jobs report is scheduled for release on March 10, followed by the release of the all-important consumer price index (CPI) data for February on March 14, before the FOMC is convened on March 22. These macro events could potentially impact both stock and crypto prices, and traders will be keeping a close eye on the developments.