- Bitcoin price fell below $20,000 after its biggest dump since November 2022.
- The top crypto asset by market capitalization was dumped amid a broader cryptocurrency sell-off, largely driven by negative news.
- Among other news, the New York Attorney General has filed a lawsuit against KuCoin over an offering of unregistered securities, with Ethereum named as one of the securities.
Bitcoin price is down almost 10% in the last 24 hours amid negative cryptocurrency news that may spur more losses.
As the Bitcoin price chart below shows, the leading cryptocurrency fell in value by market to as low as $19,569 on cryptocurrency exchange Bitstamp.
This is after a sell-off that began late Thursday extended into Friday morning, with dumping pushing BTC below the $20,000 psychological support area for the first time since early January. Bitcoin also experienced the largest price dump since November 2022 during the FTX dump.
Why Bitcoin and Cryptocurrency Crashed Today
As CoinJournal reported early Friday, today’s selling pressure for cryptocurrencies comes after the New York attorney general filed a lawsuit against cryptocurrency exchange Kucoin alleging it sold unregistered securities. The negative news was exacerbated by the fact that the lawsuit identified Ethereum as one of the securities.
The market reaction saw the price of Ethereum drop to $1,375 which was down by 9.8% at the time of writing.
The general selling pressure also follows the news that cryptocurrency bank Silvergate was on the decline. Shares of the company fell about 50% in the aftermath, with fears of more damage amid Silicon Valley’s “run banking”.
The other major news that likely fueled the new downside for cryptocurrencies was reports that the United States was targeting a new tax on bitcoin mining. The rapid collapse of Huobi Token and the security breach on Hedera also led to the broader market bloodbath.
Cryptocurrency analyst Miles Deutscher highlighted this confluence of negative triggers, noting that stocks and cryptocurrencies have lost more than $2 trillion in market cap over the past 24 hours.
In the last 24 hours:
• Stocks + cryptocurrencies have fallen over $2 trillion in value
• New York attorney designations ETH dollars security
• KuCoin has been sued
• Silicon Valley bank collapse
• Hobby Flash Crash
• Biden proposes a tax on BTC dollars Mining
• Liquidation of Voyager assets
Just another day in coding..
– Miles Deutscher (@milesdeutscher) March 10, 2023