Expectations of Bitcoin to fall below this level soon.
On February 16, Bitcoin (BTC) price exceeded $25,000 for the first time, bringing joy to the cryptocurrency community. It took the cryptocurrency eight months of struggling to finally reach this price level. However, BTC's value has been fluctuating greatly since then, dropping down to as low as $21,000. Some analysts believe that BTC may continue to fall and reach levels as low as $19,500 due to the current market downturn.
On March 3, Bitcoin (BTC) price experienced a sudden drop from $23,435 to $22,259 within an hour. This was caused by the share price of Silvergate Bank, which is a preferred banking partner for cryptocurrencies, plummeting by 60%. This drop was due to concerns about the bank's sustainability over the next 12 months.
As major crypto companies have ended their relationships with the bank, the market has also seen a sharp decline and is currently under pressure due to uncertainty about further consequences. Experts warns that if BTC fails to maintain its position around the $22.3K range, the price could see a steep drop, possibly reaching as low as $19.5K.
If Bitcoin were to reach the $19,500 level, there could be a catastrophic decline of around 15-25% in the value of altcoins, potentially leading to a crypto market collapse. As the largest cryptocurrency by market capitalization, Bitcoin remains susceptible to further decline, particularly if negative news regarding the crypto sector emerges, like a Sword of Damocles hanging over its head.
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