Crypto News Today: After a relatively optimistic first two months of the year 2023, the cryptocurrency market is currently exposed to FUD surrounding the Silvergate crisis. Interestingly, the FUD surrounding the Silvergate Bank crisis is deeper than it seems, in that prices did not recover despite the stock market rally on Monday. Meanwhile, traders prepare for Jerome Powell’s hearing before the US Senate Judiciary Committee. More importantly, it has already been announced that the crypto ecosystem will be discussed at the hearing.
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At the semiannual monetary policy report hearing to Congress, Federal Reserve Chairman Jerome Powell will testify on the state of the US economy and the central bank’s monetary policy outlook for the remainder of the year. As with previous statements from Powell, the hearing is likely to spark strong interest among traders with a high probability of volatility.
S&P 500 vs Bitcoin price difference
The recovery of the crypto market after the collapse of FTX was marked by the return of a close correlation between the price of Bitcoin and the S&P 500 index. However, the impact of the Silvergate crisis has been so great on the crypto market that sentiment has now turned neutral from an otherwise optimistic environment. On-chain data suggested that prior to the eruption of the Silvergate-related FUD, the majority of traders were long on crypto tokens. Despite this and last week’s stock market rally, there are hardly any signs of recovery in crypto prices.
Interestingly, the price differential between S&P 500 and Bitcoin is currently at its highest since the collapse of the FTX in November 2022.
📊 #crypto traders continue to wait (somewhat) patiently for prices to pick up again #shares continued to rise slightly on Monday. The correlation break between the two sectors is currently the most prominent since the #FTX collapse four months ago. https://t.co/XkyzDlIDWT pic.twitter.com/ptpYAgp57p
— Santiment (@santimentfeed) March 6, 2023
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Therefore, any encouraging signs from Powell at the hearing about signs of disinflation or economic recovery could likely lead to a jump in both stock markets and crypto prices. Traders will also be taking note of major developments in the Grayscale Vs SEC lawsuit arguments.
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