“Will BTC price drop to $26K now?”
The king of cryptocurrency Bitcoin (BTC) this morning unfortunately slipped below the $27,000 level as the latest banking crisis in the United States (US) failed to trigger an increase in the price of the digital asset as in the previous situation.
Not only that, investors starting to worry about low liquidity has also been one of the reasons BTC prices have seen a significant drop, commented Vineeth Bhuvanagiri, managing director of Emurgo Fintech.
He added that the price of BTC was also affected and was in a volatile movement when several major macroeconomic shocks erupted recently, among them the debt ceiling problem in the US which has not yet reached an agreement.
Although the Los Angeles-based bank's share price fell 22% on Thursday due to the flow of deposits in PacWest Bancorp (PACW), the crypto market was still unable to make an encouraging price move.
This is because the fear of the contagion of the banking crisis still remains low following some banks such as Western Alliance showing increased deposits, said Oanda's senior market analyst named Edward Moya.
Additionally, Greg Cipolaro, head of global research at BTC-focused investment firm NYDIG compared the tenor market* and the debt ceiling crisis in 2011 while expecting the market to be volatile in the near future.
*The time period used in deposit investments usually offered by the Bank starts from one month, three months, six months, and twelve months
As of this writing, BTC price has plunged by 2.50% to $26,891 in the last 24 hours with a market cap of $520 billion and is down 8.42% over the last week.
