Over the past seven days, the entire cryptocurrency market has been in turmoil, with total capitalization falling below $1 trillion. This happens for the first time since January 14th.
This decline is behind many negative macroeconomic developments, so let’s break it down.
First of all, Bitcoin is trading at around $20,000, although the price is slightly below at the time of this writing. Binance hit an intraday low of $19,549, with BTC down about 15% over the past seven days. However, most losses have occurred within the last 24 hours.
The rest of the market is no exception. Ethereum also dropped 15%, BNB – 9.1%, Dogecoin – 20%, MATIC – 17.7%, SOL – 20.5%. The only notable exception is XRP. Interestingly, it’s only a 2% decrease, which is the best performer in the top 10, so to speak.
The crash has been happening over the last 24 hours and not without good reason. First, Silicon Valley Bank, a major financial institution with 4/2 trillion of deposits, saw its share price drop to about 10% after trying (and failing) to raise capital by selling shares to fill a huge hole of $1.8 billion. 70% plummeted. Investors were worried about their funds, which had a negative impact on the sector as a whole.
At the same time, U.S. President Joe Biden presented a new budget that removes tax revenue losses for cryptocurrency investors and proposes significant increases in various taxes. Tensions mounted as many believed the budget would not pass.
The New York Attorney General has filed a lawsuit against KuCoin, claiming ETH is a security. This is the first time officials have claimed that ETH is security in court. This has added further regulatory pressure, with SEC Chairman Gary Gensler also adding fuel through an op-ed in which he said that few crypto entrepreneurs are following European Commission regulations. Fun time.
It’s safe to say we’re having some good days, but it will be interesting to see how the market shapes in the coming weeks. Is this a $20,000 retest? Time will tell .
market data
Market Cap: $965 Billion | 24h Volume: $108 Billion | BTC Dominance: 39.9%
Bitcoin: $19,929 (-15.1%) | Ethereum: $1,406 (-15%) | BNB: $273 (-9.1%)
This week’s headlines you can’t miss
6 possible reasons why bitcoin fell below $20,000 in one day. Bitcoin is below $20,000 today, down more than 15% over the past week. Here are six possible reasons for the recent market turmoil, and whether there are more pains to come.
Huobi Token Flash Crashes 90% in Minutes: Here’s Everything You Need to Know Huobi’s native cryptocurrency, HT, fell more than 90% almost instantly. Within minutes, the token traded at around $0.30 and almost instantly returned to roughly the same value it had before the flash crash. It’s still down more than 20%.
Here’s everything you need to know about the latest grayscale SEC developments. Grayscale CEO Michael Sonnenshein said earlier this week that he was very encouraged by the legal progress the company is making towards the potential conversion of GBTC into an ETF. Here’s everything you need to know about the latest developments in court.
NYAG claims Ethereum is the security of the lawsuit against KuCoin. New York Attorney General Letitia James has filed a lawsuit against cryptocurrency exchange KuCoin for selling both commodities and securities without the required registration. is Ether.
President Biden’s 2024 tax plan to target cryptowash trading and capital gains. President Biden released the official 2024 budget on Thursday. While cryptocurrency trading has been caught in the crossfire, the office has also proposed raising many of the existing taxes.
Arthur Hayes proposes Bitcoin-backed stablecoin Nacador. BitMEX co-founder and former CEO Arthur Hayes has proposed creating NakaDollar. It is a Bitcoin-backed stablecoin that was created without the services of the traditional banking system and is thus exempt from fiat currency regulation.
chart
This week we have chart analysis for Ethereum, Ripple, Cardano, Dogecoin and Polygon. Click here for a full price analysis.
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cryptocurrency chart By TradingView.