Bitcoin price fell to close at $27,200 on March 25 before partially recovering.
Bitcoin fell to almost $27,200
Bitcoin was valued at $27,209 as of 21:40 UTC on Friday. This decline in value represented a loss of 3.9% over 24 hours and a loss of 2.5% over one hour.
However, the cryptocurrency soon began to recoup its losses. At the time of writing (22:20 UTC), Bitcoin was priced at $27,590 and was down just 2.8% over 24 hours.
The other top ten cryptocurrencies achieved similar performance. Over 24 hours, Ethereum (ETH) fell 3.6%, Binance BNB (BNB) fell 2.4%, Ripple’s XRP (XRP) fell 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 entire crypto market currently has a market capitalization of $1.2 trillion. This amount represents a drop of 2.7% in the last 24 hours.
What caused these losses?
Various events in the crypto industry may be responsible for these losses. Most notably, Binance experienced a glitch on March 24 that briefly forced it to halt spot trading.
Elsewhere, the Federal Reserve released its decision to deny Caitlin Long’s Custodia Bank membership in the Federal Reserve System. The agency said it found “significant deficiencies” in the bank’s risk management and controls. The Fed has previously refused the bank two other times this year; Long made his own comments today.
Additionally, concerns about an SEC lawsuit against Coinbase continue to loom. The company received a Wells notice on March 22 suggesting the regulator could file suit.
Events in traditional markets could also affect crypto prices. Concerns around 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 meltdowns, such as those of Silvergate Bank, Silicon Valley Bank, and Signature Bank.
As such, the negative sentiment surrounding this news may have spilled over into the crypto market, although it is ultimately unclear what the main cause of Bitcoin’s losses may be.