The price of bitcoin (BTC) fell more than 5%, falling from $23,500 to $22,240 in just over 60 minutes on March 3, amid a wave of uncertainty surrounding cryptocurrency bank Silvergate Capital.
The price crash wiped $22 billion out of bitcoin’s total market capitalization, which is now $430.9 billion, according to Cointelegraph Markets Pro.
Ether (ETH), XRP (XRP), Cardano (ADA), MATIC (MATIC), and other non-bitcoin cryptocurrencies also saw a similar sharp drop.
Bitcoin just dropped $1200 in less than 30 minutes.
— The Wolf Of All Streets (@scottmelker) March 3, 2023
Bitcoin just dropped $1,200 in less than 30 minutes.
Markus Thielen, head of research at digital asset platform Matrixport, told Cointelegraph that he believes that The price drop is linked to the recent controversy of Silvergate Bank with its delayed filing of the 10-K annual financial report, in addition to an increased effort by US regulators trying to restrict ties between banks and crypto companies:
“The drop is due to the continued fallout from Silvergate Bank as there is now more uncertainty about the fiat on-ramp and off-ramp. Additionally, there is now increased concern in the industry that US regulators are trying to cut off more banking relationships between crypto companies and FDIC-insured banks.”
“However, this is playing in the favor of Hong Kong and China, which are becoming more crypto-friendly.”
“We have seen an increase in stablecoin activity as a sign that crypto companies are using crypto lanes to move money around,” he added.
Several technical analysts on Twitter claimed to have predicted the drop from the $23,000 resistance.
The last time BTC traded at $22,250 was on February 15.
The sharp drop comes despite a strong start to 2023; BTC is still up 34.8% on the year. It changed hands at $16,550 on January 1.
Ether has also fallen 4.74%, from $1,644 to $1,566, causing $9 billion to disappear from its market capitalization. in the first hour.
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