Regional banking stocks also plunged, with First Republic Bank (FRC) and PacWest Bancorp (PACW) falling 21% and 13%, respectively.

“Credit Suisse is a bigger story than Silicon Valley Bank (SVB) and this has Wall Street extremely nervous,” ​​Edward Moya, senior market analyst at foreign exchange market maker Oanda, wrote in a Wednesday email. “Bitcoin’s decline isn’t that bad when you consider how much pressure is hitting stocks, oil prices and the euro.”

While banking turmoil could ultimately become a bullish moment for bitcoin, “for now crypto weakness is justified,” Moya added.

Meanwhile, the CME FedWatch Tool showed that currently around 55% of traders believe the Fed will not raise interest rates at its next Federal Open Market Committee (FOMC) meeting starting March 22. An additional 45% expect the Fed to boost the rate by 25 basis points (bps), a stark change from a week ago when an increasing number of observers felt the Fed would increase the rate by 50 bps.

Will Tamplin, a senior analyst at technical analysis-based research firm Fairlead Strategies, said BTC’s resistance is strong near $25,200, while tackling “intermediate-term overbought conditions in place that have become a headwind.”

“This increases short-term downside risk to support from the 200-day [moving average] (~$19,800),” Tamplin told CoinDesk in an email.