Bitcoin’s Fast Crash to $22.2K and What’s Next: Market Watch

By akohad Mar3,2023

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Bitcoin’s price plunged toward $22K earlier today, and the entire market followed. Billions were wiped off the total capitalization as all the major cryptocurrencies are currently trading in the red.

The move follows turmoil at Silvergate Bank – a financial institution that was heavily focused on servicing major crypto companies.

Bitcoin’s Price Crashes Toward $22K

As CryptoPotato reported earlier, the price crashed to about $22.2K on Binance but has since slightly recovered to where it currently trades.

BTCUSDT_2023-03-03_11-38-07
Source: TradingView

Many seem to believe that the reason for the crash is the turmoil that was revealed at Silvergate Bank.

Yesterday, the bank said that it won’t be able to file its financial reports in time, while its Chief Investment Officer, Matthew Dibb, said:

From what we gather, most crypto companies have had to already find banking elsewhere, hence we believe the damage is likely already done in terms of implications to the wider crypto market.

The list of crypto heavyweights who seized their relationships with the bank includes Coinbase, Kraken, Crypto.com, Bitstamp, and others.

However, some experts also pointed out that the sudden crash was caused by a margin call, justifying the almost instantaneous nature of the move. In any case, experts seem to be torn on whether BTC will recover the losses or if that’s just the beginning of a much-anticipated correction following the rally to $25K.

Altcoins Also Bleeding Out

As it’s almost always the case, altcoins also took a beating following Bitcoin’s crash and the market is painted almost entirely in red.

crypto_heatmap_0303231
Source: Quantify Crypto

The worst performer today is Terra Luna Classic, which crashed by about 13% in the past 24 hours, immediately followed by Mina Protocol (MINA), which is down about 11%. AGIX is right there with them, losing over 10% on the day.

Of course, there are some exceptions. Ethereum liquid staking behemoth Lido (LDO) is up 4%, while the rest of the market is crashing. ImmutableX is also up around 6% over the same period.

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Cryptocurrency charts by TradingView.

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By akohad

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