Bitcoin’s year-to-date return came at 32.23%, way ahead of some of the biggest stock indices of the world and gold, as of March 6.
As highlighted by MarketWatch, BTC surpassed NASDAQ whose YTD stood at around 12%, followed by the S&P 500 with a 5.8% gain, and the Dow Jones which surged by only 0.12% this year.
Gold, on the other hand, significantly lagged behind Bitcoin with a YTD return of just 1.17%.
However, on the price front, Bitcoin along with the broader crypto market has been in a state of uncertainty over the past few days, as the dominant asset struggled to bounce back after a sudden price dip.
The decline has been attributed to the collapse of Silvergate Bank’s share prices, which has sparked concerns about the sustainability of the bank’s operations.
Recently, leading data analytics platform Santiment highlighted the reason behind the fall in the price.
Following a scintillating rise above $25,000 in mid-February, Bitcoin has been witnessing ups and downs, with prices going as low as $21,000 at one time.
The ongoing market downturn is causing some analysts to speculate that BTC may continue to decline, possibly hitting levels as low as $19,500.
On March 3rd, BTC took a nose dive from $23,435 to $22,259 in just an hour, coinciding with the 60% drop in Silvergate’s share prices.
Experts’ Doomsday Prediction For Bitcoin
The crypto-focused bank reported a loss of $1 billion in the fourth quarter as panicked investors rushed to withdraw deposits in the wake of crypto exchange FTX’s bankruptcy.
Several of its clients such as Coinbase, Circle, Paxos, Crypto.com, Bitstamp, Cboe Digital Markets, Galaxy Digital, and Gemini suspended ACH transfers and other commercial dealings with the bank.
It needs to be mentioned that Federal prosecutors in Washington are currently probing the La Jolla, Calif.-based Silvergate and its dealings with the now-defunct FTX and trading firm Alameda Research.
Experts further warned that BTC could see a sharp drop, possibly hitting $19.5K, if it fails to maintain its position around the $22.3K range.
One report even compared the negative market tailwinds to that of Sword of Damocles to describe how it would affect the asset.
As the largest cryptocurrency by market capitalization, Bitcoin remains susceptible to further decline, particularly if negative news regarding the crypto sector emerges, like a Sword of Damocles hanging over its head.