• Bitcoin (BTC) and Ethereum (ETH) have experienced a 5% drop in their value.
• The losses in BTC prices were caused by Silvergate Bank controversy, increased US regulatory efforts to limit relationships between banks and crypto firms, as well as rising concerns over interest rate hikes.
• The recent decline has resulted in a $22 billion reduction in Bitcoin’s total market capitalization which now stands at $430.9 billion.
Bitcoin Price and Ethereum Prediction: BTC and ETH Take a 5% Dive, but How Low Can They Go?
The cryptocurrency market has taken a hit as both Bitcoin (BTC) and Ethereum (ETH) experience a 5% dip in their value. As the two largest cryptocurrencies by market cap, this downward trend has left many wondering how low BTC and ETH can go.
Silvergate Uncertainty Undermines BTC
Bitcoin (BTC) prices have experienced a significant drop, falling over 5% from $23,500 to $22,240 in recent hours. Similarly, Ethereum, the second most valuable cryptocurrency, has also plummeted by over 5%. This decline has resulted in a loss of approximately $22 billion from Bitcoin’s total market value, which currently stands at $430.9 billion.
The ongoing fallout of Silvergate Bank may be the reason for the sharp decline in BTC’s value, as it has heightened uncertainty surrounding the fiat on-and-off ramp. In addition, US authorities seek to sever more financial ties between cryptocurrency firms and FDIC-insured institutions, which is also seen as a significant factor in the drop in Bitcoin’s price.
Interest Rates Cause Further Woes
The losses in BTC prices were also bolstered by growing concerns about interest rate hikes. The global crypto markets have been experiencing a decline due to a series of positive US economic data, which signals that the Federal Reserve may need to raise interest rates higher and for a longer duration. As a result, the crypto markets have been flashing red contributing to the drop in BTC prices .
Silvergate Bank Controversy Weighs Heavily On Market
As previously mentioned , BTC ‘s price has experienced significant drop of 5 % due to concern surrounding delayed 10 – K financial report filing of Silvergate Bank . Markest Thielen , head of research at digital asset exchange Matrixport , suggests that this is likely due to heightened uncertainty surrounding fiat on – and – off ramps . Furthermore , US regulators are seeking to limit relationships between banks and cryptocurrency firms further adding pressure on Bitcoin ‘s price .
Conclusion: How Low Can They Go?
Overall , these events have resulted into major partners severing ties with Silvergate Capital , causing investors worry resulting into current dip witnessed across all major cryptos including Bitcoin & Ethereum . While it is uncertain how low these currencies can go before bouncing back up again , it is certain that investor sentiment will be volatile until stability returns to their respective markets .