Category: NEWS
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Bitcoin price breaks below $20K amid crypto selloff
- Bitcoin price fell below $20,000 for the first time since November 2022.
- The top crypto asset by market cap dumped amid broader selloff for cryptocurrencies, largely fueled by negative news.
- Among other news, the New York Attorney General has sued KuCoin over offering of unregistered securities, with Ethereum named as one of the securities.
Bitcoin price has dropped nearly 10% in the past 24 hours amid negative cryptocurrency news that could yet catalyse further losses.
As the Bitcoin price chart below shows, the value of the leading cryptocurrency by market fell to lows of $19,569 on cryptocurrency exchange Bitstamp.
Bitcoin price fell below $20,000 to hit $19,569 on Bitstamp. Source: TradingViewThis after a selloff that began late Thursday extended into Friday morning, with the dump pushing BTC below the psychological support zone of $20,000 for the first time since November 2022 during the FTX dump.
Why Bitcoin and crypto crashed today
As CoinJournal reported early Friday, today’s selling pressure for cryptocurrencies comes after the New York Attorney General sued the crypto exchange Kucoin alleging it sold unregistered securities. The negative news was compounded by the fact that the lawsuit identified Ethereum as one of the securities.
The market’s reaction saw Ethereum price plunge to lows of $1,375 and was down 9.8% at the time of writing.
Overall selloff pressure also follows news that crypto bank Silvergate was winding down. The company’s shares plummeted nearly 50% in the aftermath, with fears of even more damage amid a Silicon Valley “bank run.”
Another headline news likely to have fueled fresh downside for crypto was reports that the US was targeting a new tax on Bitcoin mining. Huobi Token’s flash crash and a security breach on Hedera also added to the broader market bloodbath.
Crypto analyst Miles Deutscher highlighted this confluence of negative triggers, noting that stocks and cryptocurrencies have shed over $2 trillion in market cap over the past 24 hours.
In the last 24 hours:
• Stocks + crypto shed $2T in value
• New York Attorney labels $ETH a security
• KuCoin hit with lawsuit
• Silicon Valley bank crash
• Huobi flash crash
• Biden proposes tax on $BTC mining
• Voyager liquidating assetsJust another day in crypto..
— Miles Deutscher (@milesdeutscher) March 10, 2023
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Crypto bleeding has most altcoins in buying zone: Santiment
- The MVRV metric suggests most altcoins are underbought and present a buying opportunity.
- A new leg down could however push some of the tokens into a danger zone.
- Crypto prices have decline alongside weaknesses stocks.
The total cryptocurrency market cap is down 1.7% at the time of writing as the broader crypto market battles yet another bout of heavy losses.
Bitcoin price fell below $21,700 again while Ethereum traded to lows of $1,530 on Thursday, with the leading crypto assets continuing the weakness we highlighted on 8 March.
Santiment data signals “time to buy altcoins”
According to analysts at market intelligence firm Santiment, the “heavy bleeding” witnessed across the crypto market this week has many altcoins flashing buy signals. Many of the altcoins suggest an underbought outlook as traders realize losses, the firm noted in a tweet posted early Thursday.
One indicator pointing to current price levels as opportune buying zones is the Market Value Realized Value (MVRV) ratio. While prices could still fall, Santiment suggests most altcoins are trending in an opportunity zone where prices are likely to rebound higher.
Notably though, the market could still see a new leg down, pushing some of the coins into the danger zone.
“If you have been awaiting the time to buy altcoins when there is blood in the streets, our MVRV model indicates that this time has arrived. Prices can of course still fall further, but this is the most crypto assets have been in opportunity zones since early January” Santiment tweeted.
🤠📊 If you have been awaiting the time to buy #altcoins when there is blood in the streets, our MVRV model indicates that this time has arrived. Prices can of course still fall further, but this is the most #crypto assets have been in opportunity zones since early January. pic.twitter.com/LoM4ooiGUU
— Santiment (@santimentfeed) March 9, 2023
As CoinJournal reported earlier this week, the downside followed more negative news around crypto bank Silvergate and this week’s economic commentary from Fed Chair Jerome Powell.
In particular, the Fed’s hawkish outlook has the market anxious and that was visible as stocks also fell on Wednesday.
