Bitcoin (BTC) suffered a huge loss on March 3, when its trading price plummeted by 5%. The data shows that the trading price of BTC was pulled to a particular level in a matter of 60 minutes.
The report shows that the trading price of Bitcoin was at a high of $23,500 before the selling spree caused the asset to lose its value.
As the sellers went on a spree, the asset fell to a low of $22,240. The entire downtrend for Bitcoin was recorded in a matter of just 60 minutes.
Silvergate Capital Uncertainty
According to the market observers, the trading price of BTC fell because of Silvergate Capita, a major cryptocurrency-friendly bank.
Currently, there is a lot of uncertainty involving the bank that has resulted in investors losing their confidence in cryptocurrencies.
They have retreated for now, which is why the trading price of BTC has recorded a downtrend.
Drop in Bitcoin’s Market Capitalization
Due to the recent downtrend, the market valuation of Bitcoin has taken a huge hit. The data shows that due to the downtrend, Bitcoin ended up losing billions of dollars from its market capitalization.
The report shows that Bitcoin has lost a total of $22 billion in its market capitalization due to the 60-minute decline.
Following the decline, the market capitalization of Bitcoin has dived to a low of $430.9 billion.
Bitcoin was not the only cryptocurrency that suffered due to the Silvergate Bank. Other major tokens and altcoins also suffered from the same downtrend.
These cryptocurrencies include Polygon (MATIC), Cardano (ADA), XRP (XRP), and Ether (ETH). Many more cryptocurrencies had the same fate as their prices declined tremendously.
Compared to the rest of the cryptocurrencies, Bitcoin’s decline was the worst in recent sessions. It reportedly lost $1,200 in its overall value in a matter of an hour.
The situation of the Silvergate Bank
Matrixport’s head of research, Markus Thielen, talked about the recent downfall of the cryptocurrency industry. He stated that the overall market’s downtrend is caused by the controversy involving the Silvergate Bank.
According to Thielen, Silvergate Bank took time in submitting the 10-K financial report. In addition to this, the regulatory authorities are also going after the banks and cryptocurrency firms.
The main goal of the US regulatory authorities in the country is to restrict the link between cryptocurrency firms and banks.
As Silvergate Bank is a pro when it comes to cryptocurrencies and it supports their utility, the regulators going after this bank will have an impact on the crypto industry.
According to the analysts, if things go south with the Silvergate Bank, the adoption of Bitcoin may be hindered in the US. This may pull the trading price of BTC in the market.