• Bitcoin briefly fell below $20,000 for the first time in almost two months.
• The decline in cryptocurrency prices can be attributed to a variety of factors, including remarks from US Fed Chair Jerome Powell, Joe Biden’s budget proposal, and the recent closure of Silvergate Bank.
• The closure of Silvergate Bank could have a significant negative impact on the crypto sector due to its suite of services, such as custody, wire transfers and fiat deposits.
Bitcoin Price Plummets Below $20K
Bitcoin has recently experienced a significant drop in its value, reaching its lowest price point in two months at below $20,000. Ether followed suit and also saw a decrease in value. On March 10th, Bitcoin briefly fell below $20K for the first time since mid-January 2021. Altcoins lost anywhere between 3% and 10%, with Bitcoin and Ethereum coming in at roughly 6% decline each.
Reasons Behind Drop
The dip in cryptocurrency prices can be attributed to a range of factors including comments from US Federal Reserve Chairman Jerome Powell, Joe Biden’s budget proposal for 2021 and the recent closure of Silvergate Bank. All these factors have caused concern among investors and the crypto industry overall. Moreover, the total market capitalization of all cryptocurrencies has even dropped beneath the trillion-dollar mark which is indicative of an upcoming challenging period ahead for digital assets worldwide.
Silvergate Closure: Impact on Crypto Industry
The recent closure of Silvergate Bank is one of the primary reasons behind this decrease in cryptocurrency values as it provided essential banking services to crypto enterprises across America. Its suite of services included custody solutions, wire transfers and fiat deposits – crucial components necessary for many cryptocurrency companies operating within US borders today. Without such support it could be difficult if not impossible for these businesses to find other banking partners offering similar services which could impede their growth overall or even potentially put them out of business altogether.
US Crypto Miners Could Be Facing 30% Tax
As part of Joe Biden’s new budget proposal there is also discussion about introducing a 30% electricity tax specifically aimed towards American crypto miners using electricity produced within US borders so that will certainly impact those involved heavily should it come into effect as planned over this fiscal year.
Time To Buy The Dip?
Despite all these setbacks there are some analysts who believe that now might actually be an opportune moment to buy Bitcoin as it has already reached its lowest point since January 2021 so they argue that any further dips won’t necessarily result in heavy losses but rather present more buying opportunities instead therefore making this an optimal time frame with regard to investing strategies over the next few month period going forward
