Investors rejoiced at bitcoin’s (BTC) strong start in early 2023. But, currently, they fear that the flagship crypto could return to its 2022 lows. Indeed, two events have recently marked a fall in BTC. Since then, the flagship crypto does not seem to have found a way back up.
Bitcoin (BTC) drops to around $19,800
Today’s analysis shows that bitcoin (BTC) is currently at a critical level. The flagship crypto exited the levels above $20,000 it held for almost two months. She is now trading around $19,800. It turns out that the fall of BTC came after two major events. On the one hand, there is the fall of Silvergate Bank which followed the suspension of the SEN exchange. On the other hand, we have the announcement of the American budget for 2024 by President Joe Biden.
In fact, first there was a 5% decline in the price of the BTC token, seen in one hour on March 3. This came about due to the uncertainty surrounding the future of the Silvergate Bank SEN exchange. The situation got a little worse at the announcement of the voluntary liquidation of the bank, March 8. It should be pointed out that Silvergate Bank is among the leading US banks offering services to crypto businesses.
Regarding the US budget for 2024, an explanatory document has been published on the subject. The report noted that crypto miners in the United States risk finding themselves subject to 30% tax. The tax will be applied to electricity costs and is intended to “reduce mining activity“.
“The computational effort required for mining can be considerable and therefore can require a large amount of energy. The increase in energy consumption attributable to the increase in crypto mining has negative effects on the environment and may have implications for environmental justice“, can we read in The report.
In the short term, the price of bitcoin (BTC) could fall further, now that the company Silvergate has filed for bankruptcy. Then, the flagship crypto may return to higher levels. It must be said that many analysts still expect the BTC to see a notable increase in the long term.
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