6 possible reasons why Bitcoin crashed less than $ 20,000 in one day

6 possible reasons why Bitcoin crashed less than $ 20,000 in one day

You can say with certainty that Bitcoin's price has already seen better days. The cryptocurrency fell less than $ 20,000 and reached an intraaday low at around $ 19,791 (on Binance) and recorded a decrease of around 8 %in the last 24 hours alone.

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However, the step did not come without its catalysts, so let's take a look at five possible reasons why it happened.

Silvergate-Bank

On March 2, Silvergate Bank-a financial institution that used to serve countless crypto heavyweights-said that it had operational problems and that his financial reports could not submit in time. At the time, some experts believed that the greatest damage in relation to the effects on the market was caused, but that was obviously not the case.

Not long after that, however, the bank announced that it initiated a procedure for voluntary liquidation, and explained that this was the best procedure in her opinion.

In view of the latest industry -specific and regulatory developments, Silvergate is of the opinion that an orderly handling of the bank's business and voluntary liquidation of the bank are the best way forward.

Silicon-Valley-Bank

Even if it apparently has nothing to do with crypto, it is important to consider that the industry is part of the wider fintech area, which undoubtedly suffered a blow over the past day.

one of the largest financial institutions and also a massive tech-VC-the Silicon Valley Bank-is in serious turbulence.

Reuters reported that after a 60 percent annihilation of stocks, the bank has difficulties in convincing its customers of the security of their funds.

the latter was caused by the fact that SVB tried to raise $ 1.75 billion through a share sale because it has to stuff a $ 1.8 billion hole. Investors are obviously unsure whether the increase will be sufficient.

biden proposed tax changes

The US President's budget proposals also brought with them some surprises for cryptocurrency dealers and investors in the USA.

First of all, the budget aims to increase the capital gains tax and at the same time strive for a provision, which is generally referred to as "tax loss".

This is a strategy that some dealers use to compensate for their tax debts by selling assets with loss. You would then buy them back immediately afterwards.

This, together with the fact that the budget also aims to almost double the capital gains tax for investors with an income of over $ 400,000 to 39.6 %, has frightened the market. While many believe that the household will encounter massive resistance and probably not adopted, the tensions increase.

Joe biden

Gary Gensler continues to put pressure on

also Gary Gensler, the chairman of the United States Securities and Exchange Commission, continues to put pressure on the industry.

Only yesterday he came out with another contribution to opinion and argued:

crypto entrepreneurs could claim in their own marketing materials that they are transparent and regulated.

But do not make a mistake: very few, if at all, are actually registered with the SEC and adhere to the Federal Working Form laws.

The Sec has recently been busy, has set big goals in the industry and submitted complaints from left and right. Gensler's latest comment is a sign that you do not intend to slow down.

In order to make things worse, NYAG also claimed in a lawsuit against Kucoin that ETH is security in court.

The Fed will probably increase by 50 basis points

In addition, the recent speech by the chairman of the Federal Reserve - Jerome Powell. He repeated that inflation pressure was higher than before, which indicates a higher interest rate increase of maybe 50 basis points.

A higher rate increase indicates a further tightening of US money policy in order to contain inflation, which is by no means close to the interest rate of 2 %.

In any case, it is interesting to see how the market will develop in the coming weeks and whether the fiasco will escalate with Silvergate Bank and Silicon Valley Bank.

US Federal Reserve

US government sells BTC on Coinbase?

When it comes to measures in the United States that could have had an impact on the market, the thousands of BTC, which were stored shortly before the recent slump at Coinbase, should not be missed. On-chain data showed at the beginning of this week that the US government transferred almost 10,000 BTC to the largest local crypto exchange, all of which were confiscated by Silkroad.

Cryptoquant also interfered and said that the Bitcoin Coinbase Premium (the metric, which shows the difference in the price of BTC on Coinbase and other exchanges) fell into the negative area. According to one of the analysts of the company, "this indicates that there was a strong sales pressure from Coinbase".

Bitcoin Coinbase Premium. Cryptoquant.