Bitcoin has stumbled under $20,000 after several backtracks in the crypto market, just after a massive surge in prices across 2023.
Thursday saw Bitcoin’s market capitalisation fall 7.7 percent compared to the previous day, data from Trading View showed.
Similar trends took place in November 2021, when Bitcoin plummeted from $69,000 USD to $16,600 up to early 2023. External influences included the collapse of FTX, Voyager Digital, Genesis, and Terra/Luna.
Despite this, Bitcoin and numerous cryptocurrencies surged in February this year, with the former topping $25,000. However, later in the month, the United States Federal Reserve revealed high levels of inflation that would require greater-than-anticipated efforts.
Fed Reserve chair Jerome Powell aimed to reduce inflation to 2 percent to stabilise the economy.
Recently Silvergate Bank also collapsed due to its ties to disgraced cryptocurrency exchange FTX and its subsidy, Alameda Research. The former facilitated the latter’s payments despite filing for Chapter 11 bankruptcy on 11 November, just days after receiving assistance from Silvergate Bank.
Numerous cryptocurrency exchanges such as Coinbase, Gemini, and others have severed ties with the troubled bank. The Biden administration said that it was aware of the situation and would continue monitoring the Silvergate collapse closely.
