The price of Bitcoin (BTC) fell more than 5% from $23,500 to $22,240 in just over 60 minutes on March 3, amid a wave of uncertainty concerning crypto-friendly bank Silvergate Capital.
The price drop wiped $22 billion from Bitcoin’s total market capitalization, which is now at $430.9 billion, according to Cointelegraph Markets Pro.
Ether (ETH), XRP (XRP), Cardano (ADA), MATIC (MATIC) and other non-Bitcoin cryptocurrencies also suffered a similar sharp decline.
Bitcoin just dropped $1200 in less than 30 minutes.
— The Wolf Of All Streets (@scottmelker) March 3, 2023
Markus Thielen, the head of research at digital asset platform Matrixport, told Cointelegraph that he believes the price fall is linked to the recent Silvergate Bank controversy with its delayed annual 10-K financial report filing, in addition to an increased effort by United States regulators attempting to restrict ties between banks and crypto firms:
“The drop is due to the continuous fallout from Silvergate Bank, as there is now more uncertainty about fiat on-and-off ramp. In addition, there are now wider industry concerns that U.S. regulators are trying to cut off further banking relationships between crypto firms and FDIC-insured banks.”
“Nevertheless, this is playing into the hands of Hong Kong and China, which are becoming more crypto-friendly.”
“We have seen an increase in stablecoin activity as a sign that crypto firms are using crypto rails to move money around,” he added.
Several technical analysts on Twitter claimed to have predicted the fall from the $23,000 resistance.
The last time BTC was priced at $22,250 was Feb. 15.
The sharp fall comes despite a solid start to 2023, with BTC still up 34.8% for the year. It was changing hands at $16,550 on Jan. 1.
Ether has also fallen 4.74% from $1,644 to $1,566, causing a $9 billion wipeout from its market cap over the first hour.