• Bitcoin price fell below $20,000 after its biggest dump since November 2022
• The selloff was largely fueled by negative news, including the New York Attorney General suing KuCoin over offering of unregistered securities and Ethereum being named as one of the securities
• Other factors that likely contributed to the selloff include news of crypto bank Silvergate winding down, a potential US tax on Bitcoin mining, and security breaches on Hedera and Huobi Token
Bitcoin Price Drops Below $20K
Bitcoin price fell below $20,000 after its biggest dump since November 2022. The top crypto asset by market cap dumped amid broader selloff for cryptocurrencies, largely fueled by negative news.
Factors Contributing to Sell-Off
The negative news was compounded by the fact that the lawsuit identified Ethereum as one of the securities. Further downward pressure came from reports that crypto bank Silvergate was winding down and that the US was targeting a new tax on Bitcoin mining. Huobi Token’s flash crash and a security breach on Hedera also added to the broader market bloodbath.
Impact on Crypto Market
As a result of this confluence of negative triggers, stocks and cryptocurrencies have shed over $2 trillion in market cap over th past 24 hours. Ethereum price plunged to lows of $1,375 (down 9.8% at time of writing). Bitcoin dropped nearly 10% in past 24 hours with value falling to lows of $19,569 on cryptocurrency exchange Bitstamp.
Analysis from Crypto Analyst
Crypto analyst Miles Deutscher highlighted this confluence of negative triggers which could yet catalyse further losses for cryptos. He noted that stocks and cryptocurrencies have shed over $2 trillion in market cap over th past 24 hours due to these factors.
Overall, today’s selling pressure for cryptocurrencies comes after several pieces of bad news related to exchanges and taxes sparked a major selloff across markets with Bitcoin breaking below psychological support zone of $20 000 for first time since early January 2021.
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