• The total cryptocurrency market capitalization has dropped below $1 trillion for the first time since January 14th.
• Bitcoin’s price is trading around $20,000, with Ethereum and BNB also down 15% and 9.1%, respectively.
• The crash was triggered by the 70% crash of Silicon Valley Bank’s stock after it attempted to raise funds through a share sale to patch a massive $1.8 billion hole.
Crypto Market Cap Drops Below $1 Trillion
The cryptocurrency market experienced a deep correction this past week, dropping its total market capitalization below $1 trillion for the first time since January 14th. This comes on the back of a lot of negative macroeconomic developments across the entire cryptocurrency market.
Bitcoin Price Remains Around $20,000
At the time of writing, Bitcoin’s price is trading around $20,000, albeit slightly below it at just under $19,549 on Binance. BTC is down about 15% in the past seven days – most of which happened within 24 hours – with other altcoins following suit: Ethereum – 15%, BNB – 9.1%, Dogecoin – 20%, MATIC – 17.7%, SOL – 20.5%. XRP stands out as an exception here, being down only 2%.
Crash Caused By Silicon Valley Bank Stock Crash
The crash took place throughout yesterday and was triggered by Silicon Valley Bank’s stock crashing by roughly 70%. This was after they attempted (and failed) to raise funds through a share sale to patch some massive $1.8 billion hole in their balance sheet – causing investors to worry about their own investments and leading to panic selling across crypto markets globally.
Impact On Crypto Markets
As mentioned before, all major cryptocurrencies are experiencing losses this week due to this event; however, Bitcoin still remains above its previous all-time high (ATH) at approximately 33% lower than that level currently at press time ($19K). Ethereum and other Altcoins are down significantly more than that figure though; with ETH losing nearly 30% from its ATH of almost $1500 reached in February 2021 so far this week alone.
It appears that we are experiencing another major correction in crypto markets due to negative macroeconomic news affecting investor sentiment negatively and leading them towards panic selling; however, we must remember that these types of corrections often represent buying opportunities for those who can remain patient amidst such volatility – especially given how resilient Crypto markets have been over the long term despite short-term fluctuations like these!