• The price of Bitcoin has recently been highly volatile due to uncertainty surrounding Tether, the world’s largest stablecoin.
• Several well-known cryptocurrencies have experienced slight price declines as a result of US manufacturing numbers and concerns about banking services for crypto companies in the US.
• Silvergate Capital recently filed a report with the SEC announcing a delay in submitting its annual report as it assesses several events, leading to further market volatility.
Tether’s Impact on Bitcoin Price
The recent dip in the crypto market can be attributed to fears surrounding Tether, the world’s largest stablecoin. Tether has been facing legal issues, resulting in fear, uncertainty and doubt among cryptocurrency investors and traders, which caused BTC to drop to the $22,000 level. Meanwhile, other well-known cryptos such as Litecoin (LTC) and Dogecoin (DOGE) also saw slight price declines.
Silvergate Uncertainty Weighs on Crypto Market
After Silvergate filed a report with the SEC announcing a delay in submitting its annual report due to losses incurred from November FTX crash and several regulatory probes, cryptos experienced a sharp plunge last night including Bitcoin which dropped over 5% down to $22000 wiping off $22 billion from its MCap. This could be linked to recent controversy surrounding Silvergate Bank and US regulators’ efforts to restrict ties between banks and crypto firms.
Impact of Regulatory Scrutiny on Crypto Industry
The backlash faced by Silvergate Capital has led to increased regulatory scrutiny of the cryptocurrency industry which could cause investors and traders to lose faith in its stability and security leading to widespread sell-off in the market. This could negatively impact investments into new projects or cryptocurrencies offering innovative solutions that are still at their early stages of development.
Bitcoin Price Prediction
Given these factors, it is difficult to predict where Bitcoin will go next but it is likely that volatility will remain elevated until there is more clarity around Tether’s situation as well as greater regulatory certainty for crypto companies operating in the US. In any case investors should exercise caution when investing into cryptocurrencies during times like this given their high risk nature.