Bitcoin partially recovers after a 4% drop and brings the price close to $27.2K
The price of Bitcoin fell to close to $27,200 on March 25 before partially recovering.
Bitcoin fell to almost $27,200
Bitcoin was valued at $27,209 at 21:40 UTC on Friday. This decline represented a loss of 3.9% over 24 hours and a loss of 2.5% over one hour.
However, the cryptocurrency quickly began to recover its losses. At the time of writing (22:20 UTC), Bitcoin was priced at $27,590 and was down just 2.8% in 24 hours.
Other top ten cryptocurrencies have performed similarly. In 24 hours, Ethereum (ETH) was down 3.6%, Binance’s BNB (BNB) was down 2.4%, Ripple’s XRP (XRP) was down 5.0%, Cardano (ADA) was down 2.9% , Dogecoin (DOGE) was down 2.2% , Lido Staked Ether (STETH) was down 3.5%, and Polygon (MATIC) was down 2.5%.
The crypto market as a whole currently has a market capitalization of $1.2 trillion. This amount represents a decrease of 2.7% in the last 24 hours.
What caused these losses?
Various events in the crypto sector could be responsible for these losses. Most notably, Binance experienced an error on March 24 that briefly forced it to halt spot trading.
Elsewhere, the Federal Reserve published its decision to reject Caitlin Long’s Custodia Bank from joining the Federal Reserve system. The agency said it found “significant deficiencies” in the bank’s risk management and controls. The Fed has previously rejected the bank two other times this year; Long made his own comments today.
In addition, concerns about an SEC lawsuit against Coinbase continue to loom. The company received a notice from Wells on March 22 suggesting that the regulator may bring charges.
Events in traditional markets can also affect crypto prices. Concerns about German financial institution Deutsche Bank sent shares down 8.53% today. Although not directly related to cryptocurrency, Deutsche Bank’s problems follow crypto-related bank collapses such as Silvergate Bank, Silicon Valley Bank and Signature Bank.
As such, negative sentiment around that news may have spilled over into the crypto market, although it’s ultimately unclear what the root cause of Bitcoin’s loss might be.
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