• Bitcoin price dropped to lows of $19,569 on cryptocurrency exchange Bitstamp due to negative news.
• The selloff was largely fueled by the New York Attorney General suing KuCoin for offering unregistered securities and Ethereum being named as one of these securities.
• Other news that may have contributed to the selloff include Silvergate winding down, a potential US tax on Bitcoin mining, Huobi Token’s flash crash, and a security breach on Hedera.
Bitcoin Price Drops Below $20K
Bitcoin price has dropped below the psychological support zone of $20,000 for the first time since early January after experiencing its biggest dump since November 2022. On cryptocurrency exchange Bitstamp, Bitcoin fell to lows of $19,569 in the past 24 hours amid a broader selloff for cryptocurrencies.
What Caused The Crypto Bloodbath?
The crypto market took a hit following news that the New York Attorney General had sued KuCoin over offering unregistered securities with Ethereum named as one of them. This was compounded by reports that Silicon Valley bank Silvergate was winding down which sent their shares plummeting nearly 50%. Additionally, there were talks of a new US tax on Bitcoin mining, Huobi Token’s flash crash, and a security breach on Hedera which all contributed to the overall market bloodbath.
Selloff Pressure Intensifies
The selloff pressure intensified further as investors reacted negatively to this slew of unfavorable news with both stocks and cryptocurrencies shedding over $2 trillion in market cap over this period. Crypto analyst Miles Deutscher commented on this confluence of negative triggers noting “This is why many traders are getting out” before things get worse for crypto prices.
Analysts Forecast Further Losses
Analysts are expecting further losses for Bitcoin and other cryptocurrencies if these negative news trends persist or intensify in days ahead. As such, some investors are already bracing themselves against potential further downside by selling off their positions while others remain hopeful that BTC will regain momentum sooner rather than later.
Overall it remains too soon to tell how far BTC or other cryptos could drop yet it’s clear that today’s sudden crypto bloodbath is not likely done yet as long as negative news keeps coming in from all directions