Investors in the cryptocurrency market are tearing their hair out again because the price of BTC and ETH tokens has just started a sharp decline. The double-digit peak of Bitcoin and Ethereum is caused by alarming information from the market. We are talking about Silvergate and SVB.
The popular cryptocurrencies Bitcoin and Ethereum began an avalanche-like decline on the night of Thursday to Friday, and so far there has been no improvement in the rates of both digital tokens. The situation seems hopeless, because in a short time the cryptocurrency broke through the bottom and recorded a two-month low.
The price of bitcoin and ethereum plummets
The most popular cryptocurrency, Bitcoin (BTC), hit a high of $21,791 on Thursday afternoon. Small drops in the afternoon did not bother anyone, but after 19:00 big sales began.
Literally an hour later, the BTC rate fell below $21,000, and then it only got worse. Around 2:20 AM PST, the token broke through a key psychological barrier of $20,000 and finally settled at a low of $19,628 around 12:25 pm on Friday.
This means that bitcoin recorded the weakest performance in two months. Over the week, the cryptocurrency lost 10.4 percent. values. According to Coin Market Cap, the decline was 7.5% over the past 24 hours.
Similarly, the Ethereum (ETH) token is also weakening – no wonder, because the second most popular cryptocurrency usually reflects changes in BTC. The maximum since the previous day was $1543. Later, a decline began, culminating in a low of $1,379 reached around 11:50 am on Friday. This means a 10.3% weekly decline in ETH. and daily by 8.4 percent.
At 2:40 p.m. Friday, one Bitcoin is worth $20,036 and Ethereum is worth $1,407. for the token. In total, $70 billion has disappeared from the cryptocurrency market.
Silvergate and Silicon Valley Bank - why are bitcoin and ethereum falling?
Cryptocurrency market observers indicate that the outflow of investors may have several reasons. First of all, there was a general sell-off in the US stock market on Thursday, which is usually felt by digital currencies as well.
The second aspect is the recent collapse of Silvergate Capital. The company on Wednesday announced it was phasing out operations and liquidating more than $11 billion of its assets.
The company was the second largest cryptocurrency bank and was mainly engaged in lending tokens. Silvergate services were widely used, in particular, FTX collapsed.
Despite this, investors are concerned about the situation at Silicon Valley Bank (SVB). On Wednesday evening, the company said it had sold $21 billion worth of assets. with a loss of $1.8 billion. SVB is a well-known bank known for its frequent financing of technology start-ups.
“Currently, there is simply no reason to buy BTC. The market is saturated with negative incidents not only in the cryptocurrency market itself, but also in the financial market as a whole, according to Yuya Hasegawa, an analyst at the cryptocurrency company Bitbank.
Source: Wprost
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