Bitcoin price drops by 5% in 60 minutes amid uncertainty about silvergate Bank
The price of bitcoin fell by 5% within 60 Minutes in the early hours of March 3, erasing 22 billion dollars from the market capitalization of bitcoin.
The price of bitcoin (BTC) fell by more than 5% to 22,240 dollars from 23,500 dollars 60 minutes ago, amid a wave of uncertainty about cryptocurrency-friendly Bank Silvergate Capital.
And Polygon (MATIC), and many non-Bitcoin Cryptocurrencies of a similar sharp decline.
Markus Thielen, head of studies at virtual asset platform Matrixport for Cointelegraph said that he believes that the sudden price drop is related to the recent controversy over Silvergate Bank after the late submission of the annual financial report (10-K), coupled with increased efforts by US regulators to restrict relations between banks and cryptocurrency companies, where he said:
- This decline is due to the ongoing fallout of Silvergate Bank, as there is now more uncertainty about cash currency conversion.
- In addition, there are now fears sweeping the entire industry that US regulators are trying to further sever banking ties between cryptocurrency companies and banks insured by the FDIC.
- "However, everything that is happening is in the interests of Hong Kong and China, which are becoming more receptive to cryptocurrencies,"he said.
increase in stablecoin activity
"We have seen an increase in stablecoin activity, which shows that cryptocurrency companies are using cryptocurrency networks to transfer money,"he added.
Many technical analysts have claimed on Twitter that they expected the sudden decline since the resistance of the USD 23,000 price began.
The last time bitcoin was priced at 22,250 dollars was on February 15th.
The sharp decline of bitcoin comes despite the rally since the beginning of 2023, with bitcoin still up 34.8% since it was priced at USD 16,550 on January 1.
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