The decline continues since Bitcoin (BTC) failed to exceed the $25,000 level, what events triggered the decline of the crypto market?
In recent weeks, the crypto market has gained an upward momentum, especially on the positive news from China. The gradually rising BTC price, on the other hand, created great confidence in the crypto investor. In the process of BTC’s rise from $ 15,500 to $ 25,200, sharp rises were observed in many altcoins. But when we look back on the last days, we can’t see the enthusiastic crypto investors in the past weeks.
But what factors prevented BTC, which has been maintaining its upward momentum for weeks?
1- Crypto Market Saturation
When we look back on the past, we see that BTC has shown a strong rise from $ 15,500 to $ 25,250. In particular, the appetite for the rise from $ 15,500 to $ 21,500 stands out. The fact that the market is in a “bullish” trend shows that BTC, which tested the $ 21500 level, received support from that point and rose further. The fact that the $25,250 level, which has worked as both a strong resistance and a strong support in the past, has been tried and sold repeatedly, is a sign that the crypto market has reached saturation.
2- Fed Side News
Fed news, one of the biggest bearish triggers of BTC, caused great concern in crypto investors. In particular, the upcoming Fed meeting had increased the selling pressure in the crypto market. Fed Chairman Powell’s speech on March 7 was one of the factors that shook the BTC price until then. The rhetoric from Fed officials, the Fed’s warnings about the crypto sector for banks, was one of the main factors pushing BTC down. The interest rate decision to be announced by the Fed on March 22 has already aroused fear in crypto investors.
3- BUSD Crisis
When we look at the main factors that triggered the BTC decline, the scandalous events of BUSD stand out. A lot of negative news came from BUSD, the stablecoin of Binance, the world’s most popular and most traded crypto exchange. Another popular crypto exchange Coinbase’s decision to suspend BUSD, the incredible rate of withdrawals on the BUSD side, the Paxos and SEC scandal, the decline of the crypto market began. The “BUSD Crisis” supported the decline of BTC, which had reached saturation in terms of price, in the form of fundamental analysis.
4- Silvergate Coup
The issue of “audit reports” that Silvergate reported to the SEC has fueled the crypto market’s decline. Noting that he was having trouble with audit reports, Silvergate was now on Coinbase’s radar. Coinbase has announced that it will not accept Silvergate payments. Then, the big drop in Silvergate’s shares played a role in the continued decline of BTC.
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