Everything You Need to Know About the Latest Bitcoin Market Plunge

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Everything You Need to Know About the Latest
Bitcoin Market Plunge The cryptocurrency market
loses more than 70 billion in just 24 hours, as
bitcoin drops by 8 to under 20,000. With the
collapse of a crypto-focused lender and a
sell-off in the American stock market, Bitcoin
dropped below 20,000 on Friday, reaching a low
not seen in nearly two months. The value of the
cryptocurrency market decreased by more than 70
billion in the 24 hours up to 512 a.m. ET. At
511 a.m., the price of Bitcoin was 19,900.28, a
decrease of about 8 from the previous price.
Ether was priced at 1,400.63 at ET, a decrease
of more than 8. People have sold their
cryptocurrency due to a number of factors. The
U.S. Nasdaq stock market, which is heavily
influenced by technology, closely tracks the
movement of cryptocurrency values. The majority
of the significant U.S. indices finished lower on
Thursday. The chairman of the U.S. Federal
Reserve, Jerome Powell, stated on Tuesday that
interest rates may rise and remain higher than
anticipated. Rising interest rates over the
previous year have impacted risky investments
like equities, particularly cryptocurrencies. Yuy
a Hasegawa, an analyst at the Japanese
cryptocurrency company Bitbank, told CNBC via
email that there isn't much of a reason to
acquire bitcoin at the moment because the market
is overflowing with negative news. "This is bad
news for the entire financial market, not just
the crypto industry," Banking concerns Another
significant factor that is putting pressure on
crypto prices is the collapse of Silvergate
Capital, a significant lender to the
cryptocurrency industry. On Wednesday,
Silvergate announced that it would shut down its
bank and cease operations. Another indication
that the market is still being impacted by the
failure of the important cryptocurrency exchange
FTX is the fall of Silvergate. With FTX,
Silvergate did a lot of business. Separately,
Silicon Valley Bank reported late on Wednesday
that it had lost 1.8 billion on the sale of
assets totaling 21 billion. One of the most
crucial banks for tech startups is SVB. Due to
the fact that it provides conventional banking
services and finances IT projects, it is a
significant player in the U.S. venture capital
market. The asset sale occurs at a time when SVB
is having difficulty obtaining finance for
technology because venture capitalists are still
cautious due to the general deterioration of the
economy and the rising cost of borrowing.
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The U.S. Treasurys that Silvergate and SVB
invested their money in have decreased in value
since the Fed hiked interest rates. These banks
had to sell these bonds at a loss because they
needed more cash. "Overall, sentiment seems to
have turned quite bearish due to a combination of
global macro and interest rate rises as well as
the exposure many banks probably have to long
duration securities," Vijay Ayyar, vice
president of corporate development at
cryptocurrency exchange Luno, wrote in an email
to CNBC. Latest News