The overall cryptocurrency market valuation has plunged tremendously in less than an hour. Market observers and analytics firms have shared information pertaining to the shrinkage in the crypto market.
CoinGecko has shared details pertaining to the shrinkage in the cryptocurrency market within 60 minutes. The report shows that the market valuation of the crypto market has slumped by $60 billion in the mentioned period.
Due to the recent slump, the market valuation of the overall crypto market has dipped to $1.06 trillion. This is the latest figure CoinGecko has shared for the market valuation.
Possible Reasons behind the Decline
It is currently unclear what has caused the dump and analysts are trying to figure out the reason behind it. However, most of the analysts and observers have been coming up with the Silvergate explanation.
According to the analysts, this might be because of the Silvergate Controversy that the investors have become very concerned about the crypto market.
Investors do not want to invest in cryptocurrencies because they fear that their funds are unsafe with the crypto exchanges.
The Silvergate Bank has many partners from the cryptocurrency industry that have opened up their accounts with the lending firm.
Due to the negative reports, investors have started to retreat from the major exchanges. This has resulted in a major pullback in the cryptocurrency industry and the crypto market capitalization’s dip is a clear example of the dip.
Concerns Raised Due to Silvergate Bank
The recent events involving the Silvergate Bank have raised many questions within the cryptocurrency industry.
The investors as well as the cryptocurrency firms are not sure whether the bank is going to last for long or not. There are many concerns about the future of Silvergate Bank.
There are many rumors that the lending bank and a pro in cryptocurrencies may end up filing for bankruptcy.
As a result, many investors are concerned about the future of the bank. This is the reason why they have started exiting the Silvergate Bank.
This has caused a great dent in the market valuation of the entire cryptocurrency industry.
The entire market seems to have become bearish due to the recent market downtrends. They do not want to invest in cryptocurrencies as they fear the future movement of cryptocurrencies.
According to the observers, the investors may not return to the cryptocurrency industry until the uncertainty around the Silvergate Bank has been resolved.
Despite being bearish, the investors are not going all out in selling their cryptocurrencies. This means that they have not fully given up on cryptocurrencies.
They are being very vigilant and attentive to the market movement and the latest happenings in the industry.
The very example of such behavior is the market valuation of the cryptocurrency market staying over the $1 trillion mark.
The crypto market started to face a downtrend starting in February. Despite the downtrend, the crypto market has not lost its entire market valuation.
Things are still looking fine for the crypto market and it may recover once the issues have been resolved.
Negative Performances of Bitcoin and Ethereum
The latest market data shows that the trading price of Bitcoin has dipped by 5.2%. Following the dip, Bitcoin has lost $1,200 out of $24,450. At the time of writing, the trading price of BTC is at a low of $22,250.
Despite the dip, the largest crypto is still far from hitting the strong support level, which is at $21,500.
Ethereum has also witnessed a slump in its value and demand in recent weeks. The trading price of ETH dipped by 5% in the recent session. Following the dip, ETH’s price has fallen to a low of $1,567.
Other cryptocurrencies such as SHIB, DOT, SOL, DOGE, and ADA have also recorded downtrends. The trading values of these cryptocurrencies have moved downstream.