Causes of Bitcoin Prices Dropping Rp. 18 Million in Just 30 Minutes

Bitcoin prices are down. (Photo; Doc. Unsplash)

JAKARTA - The price of Bitcoin fell by more than 5 percent in 60 minutes from USD 23.500 (IDR 359 million) to USD 22.240 (IDR 340 million), following a wave of uncertainty regarding Silvergate Capital, a bank considered crypto-friendly.

According to Cointelegraph Markets Pro, the price drop has reduced Bitcoin's total market capitalization by USD 22 billion (IDR 336 trillion), to USD 430.9 billion (IDR 6.5 quadrillion). Other cryptocurrencies such as Eth (ETH), XRP (XRP), Cardano (ADA) and Polygon (MATIC) also experienced the same sharp decline. In fact, Bitcoin itself just fell by 1.200 US dollars (IDR 18.3 million) in less than 30 minutes.

“Eth (ETH), XRP (XRP), Cardano (ADA) and Polygon (MATIC), and other non-Bitcoin cryptocurrencies also saw similar sharp declines. Bitcoin just fell 1200 US dollars in less than 30 minutes,” wrote crypto analyst Scott Melker via his Twitter account TheWolfofAllStreet @scottmelker, March 3, 2023.

The fall in the price of Bitcoin was caused by a number of factors, most notably the problems with the Silvergate bank. According to Markus Thielen, head of research at digital asset platform Matrixport, this price drop is related to the latest Silvergate Bank controversy related to delays in filing annual financial reports and efforts by US regulators to limit the relationship between banks and crypto companies.

Thielen said that the decline was due to the continued fallout from Silvergate bank due to more uncertainty about the way in and out of fiat. In addition, the crypto industry is also concerned that US regulators may sever further banking ties between crypto companies and FDIC-insured banks. Nonetheless, this development is considered favorable for Hong Kong and China which are more crypto-friendly.

Some technical analysts on Twitter had previously predicted a fall from the $23.000 resistance. The last time Bitcoin was valued at $22.250 was on February 15.

The drop in price comes despite Bitcoin's bull run at the start of 2023, where it was up 34.8 percent from $16.550 on January 1. Apart from Bitcoin, Ethereum (ETH) also fell 4.74 percent from USD 1.644 (IDR 25.1 million) to USD 1.566 (IDR 22.9 million), resulting in a loss of USD 9 billion or around IDR 137.8 trillion of its market capitalization. only within the first hour.