Bitcoin fell by more than 8% overnight, dropping below $ 20,000

According to CoinMarketCap, the value of the flagship cryptocurrency fell by 8.5% overnight. At the time of writing, BTC dropped below $ 20,000, trading at $ 19,893. The global market capitalization has also suffered, falling by 7.5% over the past 24 hours, currently standing at $ 965 billion.

The drop in the value of digital assets and BTC $56,416.10 Bitcoin -1.81% Market capitalization $1.11 trillion VOL. 24 hours $4.33 billion occurred amid the negative news for the crypto community in the past few days:

• silvergate liquidation;
• the US Federal Reserve’s plans to tighten monetary policy;
• the draft US budget for 2024;
• risks of recognizing ethereum as an illegally issued security.

The reason for the decline in the value of the BTC over the past day was information about the problems of the cryptocurrency-friendly Silicon Valley Bank. Shares of the credit institution, which is one of the 20 largest U.S. banks and serves many companies close to the crypto industry, fell by more than 60% after the closure of Silvergate Bank a day earlier. This happened against the backdrop of an asset sale organized by the SVB team to raise additional capital. The demise of Silicon Valley Bank, according to analysts, could put significant pressure on the market.

As for the impact of Silvergate’s bankruptcy on the crypto market, back on March 3, bitcoin fell by 5% in an hour due to the uncertainty about the bank’s future. Earlier, there were rumors about the possibility of resuming its work, but the management decided to close Silvergate and return deposits to customers. Since then, the price of BTC has not been able to rise higher.

The published draft US budget for 2024 also had a significant impact on the value of bitcoin. The document contains several unpleasant surprises for crypto investors. A White House official confirmed that the draft budget will include a tax provision designed to reduce fictitious sales by crypto investors. The second unpleasant surprise for crypto traders is the new tax levies on capital gains in cryptocurrencies. The rate for investors with an income of $ 1 million or more will increase from 20% to 39.6%.