Bitcoin is down 9% and stays below $20,000, why?

The cryptocurrency market suddenly turns dark red. Bitcoin is down 8% and altcoins even more. It’s full, but too early to give a reason.

One thing’s for sure, if you’ve been waiting for the dive, now might be the time.

Bitcoin price below 20,000 euros

The bitcoin price chart below looked better, not a pretty sight.

The current bitcoin price is now 19,092.84 euros. In the past 24 hours, the price of Bitcoin has fallen by 8.81%, representing a loss of EUR 1,682.12.

The drop liquidated more than $90 million in long positions.

Blockchain.com Closes Asset Split

One of the reasons for the decline could come from Blockchain.com, a major US crypto company that has been around for a while and shares a lot of information about what is happening on the blockchain. The company also has a popular wallet.

According to Bloomberg, Blockchain.com will close its newly opened asset management division.

This split provided the company with an investment opportunity that tracks bitcoin against the dollar, but it went bankrupt after just 11 months.

A spokesperson said Blockchain.com launched its asset management service in April 2022, just before macroeconomic conditions began to deteriorate rapidly.

This is one of the ways to make the business more manageable. The company laid off about 28% of its workforce in January, following previous layoffs in July 2022.

It does not appear that the shutdown will affect Blockchain.com’s normal crypto exchanges.

Government bond yields are rising

Macroeconomics and regulation also play a role. This morning we already wrote about what the plans of US President Biden are, you can read that here.

In addition, two-year Treasury yields rose on expectations of further rate hikes by the US Federal Reserve.

This resulted in an inverted bond curve, with long-term yields lower than short-term yields. This is often seen as a harbinger of an economic downturn.

The fact that the inverted curve is now at its highest level since the 1980s suggests that financial markets are under pressure and that a recession is imminent. It is not a prediction, but the situation is similar to that of 1981, when inflation was also in the double digits and the Central Bank acted aggressively.

Silvergate is closing its doors

Another reason must be the news about crypto bank Silvergate. Silvergate Capital announced yesterday that its subsidiary Silvergate Bank will voluntarily liquidate its assets. In the price chart below, Silvergate shares the past month.

If you think you’ve hit rock bottom, Silvergate knows how to dig a little deeper. Today, Silvergate is down 42% again.

Investors became concerned and Bitcoin’s price began to fall when Silvergate said last week it had delayed the filing of its annual report and warned of its potential inability to continue.

Unfortunately, there is no bogeyman, cryptocurrency prices are being pulled from all sides.

Source: Btc Direct

Source link

follow:
\