Crypto Market Takes Walloping: Total Cap Falls Below $920B12. March 2023
• Crypto market capitalization dropped below the $1 trillion support on March 9 after a 16-hour negative 8.6% price movement.
• Factors contributing to this fall include concerns about the stability of the United States banking industry, efforts of the U.S. Federal Reserve to curb inflation, and U.S. labor market data released on March 10th that revealed job creation in February 2023.
• A notable bounce occurred as total crypto capitalization reached $920 billion, indicating large buyers around that level and potential for recovery of the entire crypto market cap.
Crypto Market Cap Falls Below $1 Trillion
The crypto market is taking a walloping, and there are three important reasons why BTC’s $380 billion valuation is a crucial support for the entire market: concerns about the stability of the United States banking industry, efforts of the U.S. Federal Reserve to curb inflation, and U.S. labor market data released on March 10th that revealed job creation in February 2023. As a result, total crypto market capitalization dropped below its $1 trillion support on March 9 after a 16-hour negative 8.6% price movement.
Silvergate Bank & Silicon Valley Bank (SVB)
The downfall and closure of Silvergate Bank and the shutdown of Silicon Valley Bank (SVB) by the California Department of Financial Protection and Innovation have contributed to this fall below $1 trillion in total crypto market capitalization support level.. Silvergate was a critical fiat gateway network for cryptocurrency exchanges and intermediaries while SVB possessed over $200 billion in assets and provided financial services to several crypto-focused venture firms such as Andreessen Horowitz and Sequoia Capital .
U.S Federal Reserve Efforts To Curb Inflation
In addition to these events, ongoing efforts by US Fed to curb inflation also played an important role in causing this fall below $1 trillion support level; The central bank has increased interest rates above 2% in August 2022 as well as reducing its balance sheet through asset sales.. Furthermore , unexpected results from such actions has caused investors to demand higher return for two year treasury notes versus longer term dated bonds which resulted into inverted bond curve reaching its highest level in 40 years .
$920 Billion Market Cap
A notable bounce occurred when total crypto capitalization reached $920 billion signifying large buyers at that range , potentially leading towards recovery of entire crypto markets cap . This number can be considered as significant watch point for investors now since trillions dollar mark is gone .
Cryptocurrency markets are highly volatile with prices moving quickly based upon various factors such as political developments or regulatory changes . Despite these challenges , there still exist signs pointing towards potential recovery , like mentioned above ‘$920 billion’ mark being watched by investors now since it signifies large buyers which might lead towards overall increase in cryptomarkets cap .