Bitcoin and other major cryptocurrencies dropped, sending Bitcy below $20,000 for the first time in nearly two months, following the latest budget from United States President Joe Biden and the collapse of “crypto-bank” Silvergate.
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The price of BTC dipped to $19,945 on March 10 before recovering to hover just above $20,000, according to data from CoinMarketCap.
Bitcoin had a stellar start to 2023 but fell as much as 5% in an hour on March 3 amid uncertainty at Silvergate. The price doesn’t appear to have been able to lift since.
The announcement that Silvergate Bank, one of the key banks in the United States that services crypto firms, had entered into voluntary liquidation on March 8 has emerged as a possible strong headwind for the crypto industry.
Meanwhile, a supplementary budget explainer paper on March 9 revealed that United States crypto miners could eventually be subject to a 30% tax on electricity costs under a Biden budget proposal that aims to “reduce mining activity.”
In the past 24 hours, bitcoin posted more than $98 million in liquidations, with over 94% of them being long positions, Coinglass data shows.
Investors became concerned and bitcoin’s price started dropping last week when Silvergate said that it had delayed filing its annual report and warned of its potential inability to continue as a “going concern.”