Can BTC Bounce Back? Analyzing the Market Turmoil and Its Causes
Sahana Vibhute10 Mar 20232 min read
Crypto Market is crashing! Bitcoin Price is plunging! Altcoins are dropping profusely!
After numerous attempts to hold above $21,000 for a while, the bearish cartel slashed the prices, which were fueled by multiple catalysts. The global crypto market cap dropped to $930 billion, a 6.67% drop as BTC & ETH prices drove lower by 7.17% and 7.88% respectively.
What went wrong? Why crypto markets are falling today? Will BTC’s price go up again? Let’s see :
The bullish scenario was countered by the bears after allowing them to thrive for a couple of weeks earlier. However, the bear appears to have thrived in the crypto space as the bullish scenario appears to be invalidated completely. The regulatory concerns were at the threshold of the crypto space which stepped in recently.
US President Biden Proposes Tax on Crypto Mining
After India implemented a hefty 30% tax on the profits incurred by crypto trading, the US administration has now bought into a plan to hit the mining industry. The president, Joe Biden, proposes a massive 30% tax on electricity costs under the budget, intending to reduce mining activity. The tax would be phased in at 10% per year over three years and cover electricity generated from both on and off-grid sources.
KuCoin Hit With a Lawsuit
KuCoin faces regulatory heat over the sale of unregistered securities in New York. Attorney General Letitia James said that she sued the platform because she was not able to buy or sell crypto on KuCoin, which was not registered in New York. The lawsuit also recognized Ethereum (ETH) as an unregistered security. However, the classification of ETH as a security or not has been up for debate.
Silicon Valley Bank Crash
Silicon Valley bank stocks plunged hard a day after the downfall of the Silvergate bank. Concerns have been raised over the financial health of the tech-focused bank, which includes services like the likes of crypto-friendly. The bank collapsed over 60%, wiping out nearly $80 billion in value from the shares.
Voyager Liquidates Assets
The digital asset manager, Voyager Digital, which is facing bankruptcy, has reportedly liquidated more than $80 million since March, 08. The platform has received nearly $86.8 million in USDC and sent nearly $82.5 million in crypto tokens to various addresses. The latest liquidations were fueled after the bearish actions mounted up within the crypto space.
