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This week has been a huge blow for crypto optimists! After the horror year 2022, it looked like the so-called crypto winter could end faster than expected. In the first two months of the year, Bitcoin, the world’s most important digital currency, increased by 50 percent from $ 16,600 to over $ 24,800.
But now a setback: Bitcoin price has dropped 13 percent in the last five days alone, and dropped below the psychologically important $20,000 on Friday night. On Friday afternoon, one bitcoin cost $19,700.
The second-largest cryptocurrency, Ether, also dropped to $1,400 on Friday, after nearly $1,500 the previous day. The market capitalization of all around 22,800 cryptocurrencies again fell below a trillion dollars.
The bankrupt crypto bank and its monetary policy
The weak market mood was triggered by the turmoil in the US banking sector. The collapse of crypto bank Silvergate and troubles at Silicon Valley Bank (SVB), which specializes in venture capital for the tech industry, put pressure on cryptocurrencies.
However, the uncertain future for national banks’ monetary policy is also causing headaches for investors.
Timo Emden, a German crypto analyst from Emden Research, also said in an analysis on his website: “The uncertainty regarding the future US monetary policy has made Bitcoin investors on both sides of the Atlantic even more uneasy. At the same time, recent concerns about crypto bank Silvergate are among the investors’ concerns. It continues to hang on his head like the sword of Damocles.” (nim/SDA)
Source :Blick
I’m Tim David and I work as an author for 24 Instant News, covering the Market section. With a Bachelor’s Degree in Journalism, my mission is to provide accurate, timely and insightful news coverage that helps our readers stay informed about the latest trends in the market. My writing style is focused on making complex economic topics easy to understand for everyone.
