Bitcoin Sees $22 Billion Wiped From Its Market Cap In Just An Hour, Here’s Why!
On March 3rd, Bitcoin saw its price fall by more than 5%, going from a price of $23,500 to $22,240 in just a matter of an hour, dropping to its lowest levels in over two weeks.
This sudden plunge in Bitcoin’s price saw the number one cryptocurrency wipe out up to $22 billion of its total market capitalization, which is now currently at $432 billion at the time of writing.
Aside from Bitcoin, a number of other cryptocurrencies including Ethereum, also saw their prices plunge within an hour. According to data from CoinGecko, Ethereum’s price fell by 5% in the past 24 hours, XRP fell by almost 3% and Cardano by almost 4%.
Bitcoin tonight 🤨 pic.twitter.com/XCQy8iclBo
— TradingView (@tradingview) March 3, 2023
This massive drop in price for many cryptocurrencies happened mainly due to the uncertainty surrounding the crypto-friendly bank, Silvergate Capital.
After Silvergate Capital delayed its annual 10-K report, worries started to emerge, causing the bank to see its stock tumble by up to 58% on Thursday. Following this, a number of crypto exchanges, including Coinbase and Crypto.com have suspended Silvergate payments, causing further bearishness.
“The drop is due to the continuous fallout from Silvergate Bank, as there is now more uncertainty about fiat on-and-off ramp. In addition, there are now wider industry concerns that U.S. regulators are trying to cut off further banking relationships between crypto firms and FDIC-insured banks.” Head of research at digital asset platform Matrixport, Markus Thielen, reportedly told CoinTelegraph.
Timeline of #Crypto Crash Today:
1. Coinbase suspends Silvergate payments
2. SEC says crypto exchanges not "safe"
3. Crypto․com suspends Silvergate payments
4. FTX confirms $8.9 billion in missing funds
5. Crypto loses $200+ million in hours
This can't be a coincidence.
— The Kobeissi Letter (@KobeissiLetter) March 3, 2023