The cryptocurrency market has been in a state of uncertainty over the past few days, with Bitcoin (BTC) struggling to rebound after a sudden drop in price. The drop is believed to have been caused by the collapse of Silvergate Bank’s share prices, which has raised concerns about the sustainability of the bank’s operations.
Santiment, a crypto data analytics platform, has revealed that Bitcoin’s price drop a few days ago may have been attributed to the collapse of Silvergate shares. Since then, BTC has been struggling to rebound back to its former glory.
In its latest community insight report, Santiment discusses a possible BTC support level to keep an eye on, as well as the potential future for altcoins.
Bitcoin’s recent volatility has been well-documented. After a triumphant rise above $25,000 in mid-February, it has been experiencing fluctuation and has fallen as low as $21,000. The current 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 sudden dive from $23,435 to $22,259 in just an hour. This was due to the share price of Silvergate Bank, a prominent banking partner for cryptocurrencies, plummeting by 60%.
With major crypto companies ending their relationships with the bank, the market is feeling the heat and is under pressure due to uncertainty regarding the situation’s consequences.
Experts warn that BTC could see a sharp drop, possibly hitting $19.5K, if it fails to maintain its position around the $22.3K range.
According to Santiment’e insight, this could lead to a market collapse:
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.
Bitcoin Transactions Reach 2-Year High Amid Price Drop
Bitcoin transactions reached a two-year high of 13,490.542 on March 4th, according to a tweet from Glassnode Alerts. This came just one day after the cryptocurrency fell to its support level on March 3rd.
In addition to the increase in transactions, there was also significant on-chain exchange flow. According to Glassnode Alerts, there was a total of $4.0 billion in and out of Bitcoin exchanges in the past week, with a net flow of -$17.8 million.
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