July 23, 2024

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Bitcoin drops 5% in 60 minutes amid Silvergate uncertainty

Bitcoin drops 5% in 60 minutes amid Silvergate uncertainty

Bitcoin (BTC) price fell more than 5% from $23,500 to $22,240 in just over 60 minutes, amid a wave of uncertainty over crypto-friendly bank Silvergate Capital.

The price drop wiped out $22 billion from Bitcoin’s total market cap, which now stands at $430.9 billion, according to Cointelegraph Markets Pro.

Eth (ETH), XRP (XRP), Cardano (ADA), Polygon (MATIC), and other cryptocurrencies other than Bitcoin also suffered a similar sharp decline.

Marcus Thielen, head of research at digital asset platform Matrixport, told Cointelegraph that he believes the price drop is related to Silvergate Bank’s recent controversy with its delayed submission of its 10-K annual financial report, as well as increased efforts by US regulators trying to restrict relationships between banks and companies. encryption:

The drop is due to the ongoing fallout from Silvergate Bank as there is now more uncertainty about the entry and exit ramp. Additionally, there are now broader concerns in the industry that US regulators are trying to cut further banking ties between crypto firms and FDIC-insured banks.

“However, this plays into the hands of Hong Kong and China who are becoming more crypto-friendly.”

“We have seen an increase in stablecoin activity as a sign that crypto companies are using cryptocurrency bars to move funds,” he added.

Several technical analysts on Twitter claimed that they expected a decline from the $23,000 resistance.

Bitcoin price chart. Source: Cointelegraph Markets Pro.

The last time BTC was priced at $22,250 was on February 15th.

The sharp decline comes despite a rally that has begun through 2023, with BTC still gaining 34.8% since its price of $16,550 on January 1.

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Ether (ETH) also fell 4.74 percent from $1,644 to $1,566, wiping out $9 billion from its market value within the first hour.

Ether price chart. Source: Cointelegraph Markets Pro.