The Recent Drop in the Cryptocurrency Market Has Vaporized Billions of Dollars: Here are the Developments That Caused the Market to Drop!

bitcoin stock market sales in the USA and cryptocurrency It fell below $20,000 today, to its lowest level in nearly two months, following the collapse of a focused credit institution.

More than $70 billion was wiped from the cryptocurrency market in 24 hours, as Bitcoin fell 9% to below $20,000.

Why Did The Market Drop?

Crypto sales were triggered by a number of factors. These developments are mainly as follows:

• On Tuesday, Federal Reserve Governor Jerome Powell indicated that interest rates could and may remain higher than expected. The rise in interest rates over the past year has put pressure on risky assets like stocks and especially cryptocurrencies.

  Yuya Hasegawa, an analyst at Japanese crypto firm Bitbank, told CNBC via email, “There is currently little to buy bitcoin as the market is saturated with negative developments not only for the crypto industry but also for the wider financial market. Why is there?” he said.

• Another major factor influencing crypto prices is the collapse of Silvergate Capital, a major lender to the crypto industry. Silvergate said on Wednesday it was ending operations and liquidating its bank.

  Silvergate’s fall is another example of how the collapse of major crypto exchange FTX continues to have an impact on the industry. FTX was a major customer of Silvergate.

• On the other hand, yesterday, the use of securities statements to Ethereum in the text of the lawsuit and lawsuit filed by the USA against Kucoin deepened the declines.
• While all this was happening, HT Token, the token of the Huobi stock market, experienced an 80 percent decline. It can be said that this situation has a negative effect on the market.
• Separately, Silicon Valley Bank said late Wednesday that it sold $21 billion in assets at a loss of $1.8 billion. SVB is a major bank in the technology start-up field.

  Providing traditional banking services as well as funding technology projects, the bank is considered the backbone of the venture capital industry in the US.

*Not investment advice.