Bitcoin makes partial recovery after 4% drop brings price near $27.2K
Several news events may have impacted investor sentiment negatively.
The price of Bitcoin fell to close $27,200 on March 25 before making a partial recovery.
Bitcoin fell to nearly $27,200
Bitcoin was valued at $27,209 at 9:40 p.m. UTC on Friday. That decline in value 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 (10:20 p.m. UTC), Bitcoin was priced at $27,590 and was down just 2.8% over 24 hours.
Other top ten cryptocurrencies have performed similarly. Over 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 in its entirety currently has a market cap of $1.2 trillion. That amount represents a decline of 2.7% over the past 24 hours.
What caused those losses?
Various events in the crypto sector may be responsible for those losses. Most notably, Binance experienced a glitch 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 becoming a member of the Federal Reserve system. The agency said it found “significant deficiencies” in the bank’s risk management and controls. The Fed previously declined the bank two other times this year; Long made her own comments today.
Additionally, Concerns around an SEC lawsuit against Coinbase continue to loom. The company received a Wells notice on March 22 suggesting the regulator may file charges.
Events in traditional markets could be affecting crypto prices as well. Concerns around the German financial institution Deutsche Bank caused shares to fall 8.53% today. Though not directly related to cryptocurrency, Deutsche Bank’s issues follow crypto-related bank collapses such as those of Silvergate Bank, Silicon Valley Bank, and Signature Bank.
As such, negative sentiment around that news may have spilled over into the crypto market, though it is ultimately unclear what the main cause of Bitcoin’s losses may be.