The crypto market has been hit by a massive bear trend where the pioneer cryptocurrency, Bitcoin price, has lost its most crucial area of $20,000. The flagship currency has lost nearly 10% in the past day. At the time of reporting, Bitcoin is selling at $19,901 after a drop of 8.44% in the last 24hrs.
One of the main reasons for this massive pull back is yesterday’s collapse of Silvergate Bank followed by a lawsuit against KuCoin and Federal Reserve’s hawkish approach.
Silvergate Collapse
The crypto-friendly US based Silvergate Bank claimed yesterday that the company is winding up its operations and will liquidate the bank. Now, a day after Silvergate’s collapse, various other crypto based firms like Binance, Coinbase have come forward to reassure their financial stability.
New York Based Attorney General Sues KuCoin
The New York Attorney General’s office has filed a lawsuit against KuCoin exchange. The reason for the lawsuit is that as per the office KuCoin has violated securities and commodities law. The Attorney General’s office claims that KuCoin is allegedly offering tokens like Ether without registering with the firm.
Federal Reserve : Interest Rate Hikes To Be Higher than Expected
In the early days of March the Federal Reserve chair, Jerome Powell stated that February’s economic data might point towards increased inflation. Further, the Fed chair said that if the data reveals an increased inflation, interest rate will also be increased.
Hence, the upcoming February’s CPI report and economic data is said to play a key role in deciding further Bitcoin price action.
