21.co CEO Dismisses SEN Platform Closure as Having Meaningful Effect on Bitcoin’s Price
The recent updates by Switzerland-based ETP provider Zug and 21.co ruled out the current bitcoin’s price movement as a consequence of Silvergate terminating the SEN Platform.
The concerns of the Silvergate Capital crisis affecting the crypto industry prompted scrutiny from the Zug co-founder Hany Rashwan. Instead, Rashwan, who also is the 21.co chief executive and co-founder attributed the macroeconomic factors to the bitcoin price.
Rashwan observes that the liquidity crisis and loss experienced by Silvergate Capital, alongside the sudden closure of the crypto lending SEN platform, are minimally moving the BTC price. On the contrary, the crypto price levels respond to dynamism witnessed in macroeconomic factors, such as rising East Asian traffic and accelerated inflation.
Minimal Influence of Silvergate’s Woes
In his response during a televised interview, Rashwan relegated Silvergate’s decline as having minimal impact on crypto pricing. He conceded that Silvergate is among several factors determining the price movement.
Rashwan waded into the previous week’s events when California-headquartered Silvergate confirmed suspending the crypto exchange platform that offered 24/7 services to leading crypto firms.
He observed that Silvergate justified the closure with the FTX implosion and regulatory pressure. Its closure would have adverse effects across the digital assets ecosystem, given that key players, including Binance.US, Gemini and Kraken, utilized the services.
Rashwan considers Silvergate Capital’s event still trapped within the toddler stage to cause sustainable influence on BTC pricing. Consequently, the executive thinks the BTC price performance is more susceptible to macroeconomic factors. The Zug official ranked rampant inflation as a critical driving factor in the prevailing crypto price.
Is the Crypto Price Movement Factoring Inflation?
Rashwan perceives other macroeconomic events as influencing the price level that various cryptos are exchanging hands. The computer engineer of Egyptian origin asserted that crypto prices would factor the testimony that US Fed Reserve chair Jerome Powell would convey to the US senate on March 7.
He projects an increase in interest rates in efforts to contain inflation. Nevertheless, pinpointing the link between Bitcoin pricing and inflation is uncertain.
Rashwan’s scrutiny of the prevailing economic climate ruled out recovery from the constricted period. Instead, the crypto industry would witness rising interest rates. He expressed uncertainty in determining whether the digital assets market is factoring in the higher interest rates.
Bullish Steam as China Loosens Covid-19 Pandemic Restrictions
A notable Rashwan’s admission is the impact of East Asian traffic as China loosens the restrictions imposed during the Covid-19 pandemic. The move by China is facilitative and likely driving the recent rally within the digital asset sector.
Rashwan decries that a substantial portion of East Asian traffic is subdued owing to economic and political factors. Nevertheless, the decision to open up China could trigger bullish steam witnessed as a buy signal.
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