In a dramatically unexpected manner, the entire crypto market capitalization is down by 7% within the past 24 hours according to data from CoinMarketCap, with deeper insight subsequently provided by Binance CEO Changpeng Zhao (CZ).
CZ remarked that the sudden crypto fall was not unconnected to some negative ugly developments such as Silicon Valley bank troubles, USAG suing Kucoin, Whitehouse seeking to impose 30% tax on mining electricity, Huobi token flash crash, among others.
It is noteworthy that the price of Bitcoin (BTC) also fell to $19,768 on March 10 before partly recovering. It is exchanging hands at $19,873 at the time of writing as per CoinMarketCap data. Altcoins such as Ethereum, FTM, Matic, and others are down respectively.
One of the major factors that triggered the decline of crypto prices was the Silvergate fold up. On March 9, Silvergate capital corporation revealed that it will wind down and enter voluntary liquidation for its crypto bank due to the financial crisis.
It appears that the stellar beginning Bitcoin recorded in 2023 is being eroded. However, a stumbling block awaits digital assets following the proposition of 30% tax on crypto mining electricity usage by the U.S. President Joe Biden.
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Bitcoin’s Possible Next Line of Action
While derivatives data shows that professional traders are unwilling to go bearish, Bitcoin (BTC) price is likely returning to $19,300 in a bid to reset a key metric around speculative profit-taking according to the analytics firm Glassnode.
Glassnode explained that short-term holders (STHs) will mostly dictate BTC price resistance if the 2023 rally will continue or not.
Meanwhile, the continued clampdown by the United States Securities and Exchange Commission (SEC), among other occurrences, will have overbearing effects on BTC. Indeed, the bear market is far from over.
