The cryptocurrency market has taken a hit as both Bitcoin (BTC) and Ethereum (ETH) experience a 5% dip in their value. As the two largest cryptocurrencies by market cap, this downward trend has left many wondering how low BTC and ETH can go.Bitcoin (BTC) prices have experienced a significant drop, falling over 5% from $23,500 to $22,240 in recent hours.
Similarly, Ethereum, the second most valuable cryptocurrency, has also plummeted by over 5%. This decline has resulted in a loss of approximately $22 billion from Bitcoin's total market value, which currently stands at $430.9 billion.The ongoing fallout of Silvergate Bank may be the reason for the sharp decline in BTC's value, as it has heightened uncertainty surrounding the fiat on-and-off ramp.
In addition, US authorities seek to sever more financial ties between cryptocurrency firms and FDIC-insured institutions, which is also seen as a significant factor in the drop in Bitcoin's value.The losses in BTC prices were also bolstered by growing concerns about interest rate hikes.
The global crypto markets have been experiencing a decline due to a series of positive US economic data, which signals that the Federal Reserve may need to raise interest rates higher and for a longer duration.Read more on cryptonews.com