The value of Bitcoin, the leading cryptocurrency, and Ether, the second most valuable, has dropped significantly, reaching its lowest point in two months. On March 10th, Bitcoin briefly dropped below $20,000 for the first time in almost two months, hitting a low of $19,918. This can be attributed to several factors, including US Fed Chair Jerome Powell’s remarks, Joe Biden’s budget proposal, and the recent closure of Silvergate Bank. The dip in cryptocurrency prices is causing concern among investors and the industry, and the fact that the total market capitalization of all cryptocurrencies has fallen below $1 trillion indicates a challenging period for the market. The recent closure of Silvergate Bank, which provided essential banking services to crypto enterprises in the US, is considered a primary reason behind the decrease in cryptocurrency values, while Biden’s proposed 30% tax on electricity costs for US crypto miners could have negative implications for the entire crypto market. The significant drop in Bitcoin’s price has affected the entire crypto market, with other widely-used altcoins also losing value, indicating volatility and unpredictability in the cryptocurrency market.
