While stocks on the Indian market were on a boom on Friday, the fate was different for cryptocurrencies. The crypto markets witnessed a plummet in prices amid uncertainties in their market. U.S. senators announced an investigation into Binance, a leading cryptocurrency platform, on the alleged violation of U.S. regulator guidelines as reported by Investing.com.
Silvergate Capital a cryptocurrency lender saw its shares decline by over 50 per cent as it delayed releasing its financials on Thursday. The uncertainties looming on the cryptocurrency organizations had a direct impact on the leading cryptocurrencies causing an immediate drop in value.
Bitcoin slipped again after its stellar gains of February were short-lived. Bitcoin touched a high of $24,809 on February 20, marking a six-month high for the world’s most dominant cryptocurrency.
Bitcoin dropped below its $23,000 mark initially and later breached the $22,500 mark to trade around $22,300. Ethereum on the other hand breached the $1,600 level and was trading around $1,560.
Altcoins followed suit of their market leaders and declined Popular altcoin tokens like Litecoin, Avalanche dropped 9 per cent and 8 per cent respectively while meme-based Dogecoin and Cardano shed 7 per cent each while Polkadot and Shiba Inu lost 6 per cent each in the last 48 hours.
Edul Patel, Co-founder and CEO at Mudrex stated that the cryptocurrency market is dropping due to the impact of US manufacturing data release and the uncertainty surrounding the access to banking by crypto exchanges and the government’s regulations regarding crypto as reported by Business Today (BT).
Sathvik Vishwanath, Co-founder and CEO of Unocoin said that the bearish correction was a result of Coinbase and LedgerX announcing their exit from Silvergate Bank amid concerns about its solvency as reported by BT.
The only cryptocurrencies surviving the onslaught were stablecoin, the coins deriving their value from fiat currency like the dollar. The impact that any uncertainty in the cryptocurrency exchange can have on the value of the coins itself is a pointer for the bubble-like ecosystem currently surrounding the cryptocurrency market.
The extreme volatility of the market has been one of the leading factors for investors to shy away from cryptocurrency. The concern about the maturity of the market arises as the extent of the influence of the exchange is high on the value of independent cryptocurrency.
In the last 48 hours, the global cryptocurrency market fell by over 4.01% taking the total cryptocurrency m-cap lower to around $1.03 trillion.
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