Bitcoin (BTC) recently declined below the crucial $20,000 level for the first time since mid-January, marking an abrupt change in the cryptocurrency’s 2023 uptrend. In the last 24-hours, the largest digital currency by market capitalization fell 7.7% to around $20,040, though there was some recovery on Thursday (ET).
The year started on a low note for bitcoin as it was trading at around $16,600 after experiencing a decline throughout 2022. However, it staged a powerful rally that took it to $25,000 by mid-February, representing an increase of over 50% for the year. at that point. Nevertheless, subsequent events have contributed to a wave of bearish sentiment among investors, prompting sellers to come out in force.
One factor weighing on the cryptocurrency’s value is a highly-anticipated inflation report that cast doubt on the US Federal Reserve’s claim earlier this year that deflation was underway. Fed Chair, Jerome Powell recently told Congress that the central bank still has a lot of work to do to achieve its 2% inflation target.
In addition to inflation fears, crypto-friendly lender Silvergate Bank collapsed on Wednesday evening. Furthermore, the US Department of Justice’s move to move 49,000 bitcoins seized from darknet marketplace Silk Road to a new address has fueled speculation that the government may soon sell that sizable stash. These developments have combined to create a bearish outlook for bitcoin, which has caused its value to slide below the critical $20,000 level.
Here are the major cryptocurrencies trading on March 11, 2023 from 9am IST:
Bitcoin: $20,646.60
+1.69%
Ethereum: $1,480.02
+2.39%
Tether: $1.02
+0.54%
USD Coin: $0.9969
-0.62%
BNB: $283.54 USD
+2.06%
XRP: $0.376
-0.39%
Dogecoin: $0.06805 USD
+1.47%
Cardano: $0.3238
+3.33%
Polygon: $1.07
+5.03%
Polkadot: $5.70 USD
+3.99%
Tron: $0.05763
-1.02%
Litecoin: $73.30
-3.76%
Shibu Inu: $0.00001053
+2.41%