Bitcoin price drops 5% in 60 minutes amid uncertainty about silvergate bank

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

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

Other cryptocurrencies such as ethereum (ETH) and xrp (XRP) and cardano (ADA) and Polygon (MATIC), and many other cryptocurrencies other than bitcoin suffered a similar sharp decline.

Markus Thielen, head of research at digital asset platform Matrixport, told Cointelegraph that he believes the sudden price drop is linked to the recent controversy surrounding Silvergate after the late submission of its 10-K annual financial report, along with increased efforts by US regulators to restrict relationships between banks and cryptocurrency firms. coded, where he said:

This drop is due to the ongoing fallout from Silvergate Bank, as there is now more uncertainty around fiat transfers. In addition, there are now concerns gripping the entire industry that US regulators are trying to cut further banking ties between cryptocurrency firms and FDIC-insured banks.

“However, everything that is happening plays into the hands of Hong Kong and China who are becoming more receptive to cryptocurrency.”

“We have seen an increase in stablecoin activity which indicates that cryptocurrency firms are now using cryptocurrency networks to move funds,” he added.

Several technical analysts claimed on Twitter that they had anticipated the sudden decline since the $23,000 price resistance started.

Bitcoin price chart. Source: Cointelegraph Markets Pro.

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

Bitcoin’s sharp decline comes despite a rally since the beginning of 2023, with Bitcoin still up 34.8% since it was priced at $16,550 on January 1.

Ethereum (ETH) fell 4.74% to $1,566 from $1,644, wiping out an estimated $9 billion from the market value within the first hour.

Ether price chart. Source: Cointelegraph Markets Pro.

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