Major coins traded in the red Thursday night after the president Joe Bidenits new budget proposal that could potentially require a 30% tax on electricity costs for cryptocurrency miners.
| Cryptocurrency | Gains (+/-) | Price |
|---|---|---|
| Bitcoin | -7.94% | $20,027 |
| Ethereum | -7.42% | $1424 |
| Dogecoin | -9% | $0.065 |
What happened: Bitcoin (CRYPTO: BTC) quickly regained some of the lost ground of late and is holding around $20,040, down 7.94% in the last 24 hours.
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After reaching an all-time high of over $69,000 in November 2021, Bitcoin fell shortly after and continued to decline throughout 2022, reaching around $16,600 in early 2023. However, in early February there was a sharp rally, which took Bitcoin to over 50% gains in one year at a price point of $25,000.
Ethereum (CRYPTO: ETH) fared similarly to Bitcoin and was also down approx. 7.42% to change hands under $1,450. Dogecoin (CRYPTO: DOGE) was trading at $0.065, down 9% in the last 24 hours.
At the time of writing, the global crypto market capitalization was $929 billion, down 6.68% in the last day.
US stocks fell sharply on Thursday as financial stocks took a hit and investors braced for a potentially market-shaping earnings report due on Friday. The S&P 500 and Nasdaq Composite both ended the day down 1.85% and 2.05% respectively.
See more: Best Crypto Day Trading Strategies
News Highlights: According to a Finance Ministry supplementary budget released on Thursday, any firm using resources to mine digital assets will be subject to an excise tax of 30% of the cost of electricity used. This proposed tax will be implemented after the end of the year, and the rate will be phased in evenly over three years – 10% a year – until it reaches the maximum rate of 30% by the third year. Additionally, crypto miners will be required to report the amount and type of electricity used, as well as the value of that electricity.
The Federal Reserve’s top regulatory official, Michael Barr, on Thursday, emphasized the “potentially transformative” effects of cryptocurrency technology on the financial system — but highlighted the need for “guardrails” to ensure those effects are realized. He warned that recent market turmoil surrounding crypto has illustrated the risks it can pose to traditional banks, while noting that regulatory measures have been put in place to encourage caution.
Analyst Notes: “The fight for survival did not last long for Silvergate Capital. Following the closing, Silvergate Capital announced its intention to wind down operations and voluntarily liquidate the bank in an orderly manner and in accordance with applicable regulatory processes. Bitcoin is lower and nearing monthly lows in February. This remains a tough environment for crypto given the fallout from Silvergate Capital, so Bitcoin could see further selling pressure test the $20,000 level,” said Edward Moyasenior market analyst at OANDA.
Michael van de Poppe, founder and CEO of trading company Eight, said that Bitcoin is taking the lowest and there is a lot of liquidity being taken, hence the recent acceleration seen in both Bitcoin and Ethereum. He believes that Bitcoin may reach a low of $20,400, and then its surge may be accompanied by bearish euphoria. He also notes that the RSI analysis has already been completed.
Almost a month ago, people wanted to enter #Bitcoinand stormed over each other.
The price has fallen by 20% since then, which is the time you should start collecting, not when things have skyrocketed.
Counteract your feelings.
— Michaël van de Poppe (@CryptoMichNL) March 9, 2023
Analyst Carl From The Moon said Bitcoin has formed a falling wedge. This pattern has a 70% chance of breaking up.
JUST IN: #Bitcoin formed a falling wedge. This pattern has a 70% chance of breaking up.
Look here: pic.twitter.com/UbZj2SOhkY
— Carl From The Moon (@TheMoonCarl) March 9, 2023
Santiment noted that with Bitcoin breaching $20,600 and altcoins falling even faster, the crypto community is turning its focus back to BTC. This marks the highest ratio of BTC vs altcoin discussions since July 2022, a sign that fear is prevalent in the markets.
😓 With #Bitcoin gets $20.6,000 and #altcoins falls even faster, and the audience focuses back on $BTC. This is the highest ratio of BTC vs alt discussions since July 2022. High Bitcoin discourse is a sign of fear, which historically can turn the markets. pic.twitter.com/MAx3ZXhrtp
— Santiment (@santimentfeed) March 9, 2023
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