The cryptocurrency market suddenly turned dark red. Bitcoin is down 8% and altcoins are losing even more. There’s a lot going on, but it’s too early to pinpoint a single cause.
What’s for sure, if you’ve been waiting for a dip, now might be a good time.
Bitcoin price is less than 20,000 euros
The Bitcoin price chart below looks better, which is not a pretty sight.
Present Bitcoin rate From now 19,092.84 euros. In the last 24 hours, the Bitcoin price has fallen by 8.81%, which represents a decrease in value of €1,682.12.
The pullback resulted in more than $90 million of long positions being liquidated.
Blockchain.com is closing its assets division
One of the reasons for the decline could come from Blockchain.com, a major US crypto company that has been around for a long time and shares a lot of information about what is happening on the blockchain. The company also has a popular portfolio.
according to bloomberg Blockchain.com will shut down its newly opened wealth management division.
With this division, the company presented an investment opportunity that tracked Bitcoin against the dollar, but is closing its doors after only 11 months.
A spokesperson said that Blockchain.com opened its asset management service in April 2022, shortly before macroeconomic conditions rapidly deteriorated.
This is one way to make a business more manageable. The company laid off about 28% of its workforce in January after previous layoffs in July 2022.
It does not appear that the closure will affect the normal cryptocurrency exchange of Blockchain.com.
Interest rates on government bonds are rising
Macroeconomics and regulations also play a role. This morning we already wrote about what US President Biden’s plans are, you can read that here.
In addition, yields on two-year government bonds rose, due to the expectation of more interest rate hikes by the US central bank.
This has resulted in an inverted bond curve, with long-term returns lower than short-term returns. This is often seen as a harbinger of an economic slowdown.
The fact that the inverted curve is now at its highest level since the 1980s indicates that financial markets are under pressure and that a recession may be imminent. This is not a prediction, however The situation is the same as it was in 1981. Then inflation was also in double digits and the central bank cracked down.
Silvergate is closing the doors
Another reason could also be the news regarding the Silvergate crypto bank. Yesterday, Silvergate Capital announced that its subsidiary Silvergate Bank will voluntarily liquidate its assets. Below is the price chart for Silvergate stock from last month.
When you think you’ve hit the bottom, Silvergate knows how to dig a little. Today, Silvergate lost 42% again.
Investors became concerned and the price of bitcoin began to fall when Silvergate said last week that it had delayed submitting its annual report and warned that it might not be able to continue.
Unfortunately, there is not a single bogeyman, cryptocurrency prices are being pulled from all sides.
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