BTC Price Plummets Below $20K, Ethereum by 7%

Key Takeaways:

• The top cryptos as per the market cap witnessed a massive plunge, falling prey to the FUD created due to multiple events having a negative impact
• The Global crypto market cap was slashed by more than 6% to reach $930 billion while the BTC price is trading at $19,948 for the first time since the first fortnight of January 2023

Crypto Market Today at a Glance

Top Cryptos Today by Market Cap

The above chart illustrates the 24-hour price performance of the top 15 cryptos as per the market cap. The majority of the cryptos have plummeted hard with the top 2 cryptos, Bitcoin & Ethereum contributing more than 50% of the entire market cap slashed by more than 7% each. Tron witnessed a massive fall of more than 12% which was fueled by the bearish market sentiments hovering around the latest drop in the HT prices due to some abnormality. 

What went wrong? Why did the Crypto space plunge so hard?

Some days ago, Bitcoin price recorded the largest single-day jump of over $1500 and presently, a similar event occurred but in an opposite direction. Multiple reasons fueled this plunge of Bitcoin & majority of the altcoins, some of which are mentioned below.

US President Proposed a Reform in Tax Laws

A year after the Indian government released the tax laws on crypto, on March 9, 2023, the USA moved in and proposed a 30% tax on electricity used for mining. The main intention behind this move is to reduce the mining activity within the state. The tax regime includes taxes to be imposed in phases over the next 3 years of 10% each year. The electricity used from both on and off-grid resources will be considered for paying taxes.

Silicon Valley Bank Crash

A day after the Silvergate bank collapse, yet another tech-focused bank of the Silicon Valley’s stocks plunged hard. Concerns have been raised over the financial stability of the bank as it offered crypto-friendly services. The collapse accounted for a drop of 60% whipping out $80 billion value. 

Ethereum Classified as Unregistered Security in Kucoin Lawsuit

In a fresh update, Kucoin faced regulatory heat as an Attorney General, Letitia James sued the platform. She was unable to buy or sell the cryptos on the platform as it was not registered in New York. Interestingly, Ethereum was also called an ‘unregistered security’ in the same lawsuit. 

Bitcoin Price Today

Source: Tradingview

• Bitcoin price was trading along the lower trend line since the beginning of 2023 as the prices kicked-off a fine upswing to reach beyond $25,000
• However, the selling volume has mounted heavily which may further drag the prices lower which are currently testing crucial support levels at the 200-day MA, colliding with the trend line
• Considering the current trade set up, it is quite evident that BTC price is melting down and may drop below the pivotal levels as selling pressure mounts
• As long as the price is below the crucial resistance at $21,500, the sellers appear to be in control while the immediate targets remain below $19,000 at around $18,300

Read More: Bitcoin Price Prediction

Ethereum Price Today

Source: Tradingview

• Ethereum prices are hovering within crucial resistance and support levels, flashing the possibilities of extending the bearish wave as bulls distance themselves for a while
• The price has just dropped below $1400 and is heading to test one of the important support at $1378. Failing to hold at these levels may spark a fresh bearish move towards the next levels close to $1000
• The RSI and MACD are extremely bearish without displaying any chance of a bullish reversal and hence the possibility of breaching the interim support at $1378 emerges
• However, the support at $1200 may also hold the prices for a while, and may also trigger a rebound, if the bulls jump in at the right time

Read On: Ethereum Price Prediction

What more is to be witnessed in the coming days? Keep an eye out for Crypto News on CoinDCX blog.