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The blockchain analytics firm, Santiment (@santimentfeed), tweeted this morning that the price drop of the crypto market leader, Bitcoin (BTC), was likely caused by the recent Silvergate share price collapse.
📉 #Bitcoin's price drop a couple days ago, likely attributed to the #Silvergate share collapse, has had a tough time rebounding back. Our latest community insight discusses a potential $BTC support level to watch, and what could be in store for #altcoins. https://t.co/HMgIIuc5AD pic.twitter.com/i22qLhCLbV
— Santiment (@santimentfeed) March 6, 2023
In their latest Insights report, Santiment mentioned how BTC’s price was able to break above $25,000 for the first time in 8 months. However, since then, the crypto’s price has been fluctuating – dropping as low as $21,000 in the weeks that followed.
According to the report, analysts forecast that BTC’s price will continue to fall in the coming weeks, and have set a downside target for the market leader at $19,500 given the current financial and crypto market landscape.
The Insights added that BTC’s price experienced a sudden drop from $23,435 to $22,259 on March 3, within an hour as the share price of the preferred banking partner for cryptos, Silvergate Bank, plummeted 60% due to concerns related to the company’s sustainability over the next 12 months.
As a result, crypto companies have terminated their relationship with the bank. Given the current pressure that Silvergate Bank is receiving from the market, and the current market standing of the crypto market, traders and investors may want to brace for a steep drop in BTC’s price in the coming weeks.
The report also mentioned that analysts warn that BTC’s price could drop to the $19,500 level should the market leader’s price fail to remain above the $22.3K range.
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