Bitcoin Price as of 11th March is around $20,500. But it fell below $20,000 for a few hours. There are two main reasons for the fall of Bitcoin below $20,000.
Silvergate Capital’ Fall
Silvergate Capital is a crypto-focused lending institute. On the 8th of march, Silvergate announced that they are winding down their operations and liquidating the bank.
Bitcoin price has been falling down slowly since the announcement. Open up the Bitcoin chart and you will see a slow downfall after the announcement. That’s why Silvergate is one of the main reasons for the Bitcoin price going down below $20,000.
Fed Increasing Interest Rate Again
Fed Chair Jerome Powell on 7th of the march did a live session about the economy and interest rates on Capital Hill. He said there will be again an interest hike in future.
“The latest economic data have come in stronger than expected, which suggests that the ultimate level of interest rates is likely to be higher than previously anticipated,” said Jerome Powell.
The Market Cap of Bitcoin also went down below the $400 billion mark because of these announcements.