The cryptocurrency market has been experiencing a significant downturn recently, with the global crypto market cap dropping below $1 trillion and Bitcoin's price falling below $20k. This trend has been attributed to a combination of factors, including negative publicity surrounding Silvergate Bank and a lawsuit filed by US regulators against KuCoin.

The negative publicity surrounding Silvergate Bank has caused investors to worry about the stability and security of the cryptocurrency market. Silvergate Bank is a major player in the crypto industry, providing banking services to many of the leading crypto exchanges. Its recent decision to stop its liquidations has raised concerns among investors, leading to a sell-off in the market.

The lawsuit filed by US regulators against KuCoin has also contributed to the negative sentiment surrounding the cryptocurrency market. The lawsuit alleges that KuCoin violated securities laws by trading ether without registering as a broker-dealer. This has led investors to worry about the potential legal risks associated with investing in cryptocurrencies, further fueling the sell-off in the market.

In addition to these specific events, there are other macroeconomic factors that are affecting the cryptocurrency market. One of the most significant factors is the fear of higher interest rates. As the economy begins to recover from the COVID-19 pandemic, there are concerns that inflation will rise, leading to higher interest rates. This could have a significant impact on the cryptocurrency market, as investors may choose to sell their assets in favor of safer investments.

Another factor affecting the cryptocurrency market is the upcoming US jobs data. Many investors are waiting to see how the job market is recovering from the pandemic, and the release of this data could have a significant impact on the market. If the data shows that the job market is improving, investors may become more bullish on the market, leading to a recovery in prices.

Despite these challenges, many experts remain optimistic about the long-term prospects of the cryptocurrency market. They believe that cryptocurrencies have the potential to revolutionize the financial industry, offering faster, more secure, and more efficient transactions. However, in the short term, investors should be prepared for volatility and be cautious in their investments.

In conclusion, the cryptocurrency market is currently experiencing a significant downturn, with the global crypto market cap dropping below $1 trillion and Bitcoin's price falling below $20k. The negative publicity surrounding Silvergate Bank and the lawsuit against KuCoin have contributed to this trend, along with fears of higher interest rates and the upcoming US jobs data. Despite these challenges, many experts remain optimistic about the long-term prospects of the cryptocurrency market, but investors should be prepared for volatility in the short term.

Any other factors affecting the crypto market?

 

The world's largest cryptocurrency, Bitcoin, has been on a constant decline as the digital asset market faces heavy turbulence. Crypto investors have been hesitant to indulge in the trade due to future events, such as the Mt Gox Bitcoin payout, which has been hounding the crypto market.

The Mt Gox creditors were set to receive almost 138K Bitcoins as an "early repayment" scheduled on March 10. The total worth of the Bitcoins to be distributed among the creditors was calculated to be around $3 billion. However, according to reports, the probable black swan event has been delayed for now. The rehabilitation letter issued by Mt Gox stated that the trustee has decided to change the deadline for the payout to April 6, 2023. It mentioned that the court has granted the trustees the ability to postpone the repayment deadline.

The new order will allow the trustee to repay creditors between April 6 to October 30, 2023, instead of the previous lump sum repayment deadline and intermediate repayment deadline, scheduled to be from October 31 to September end. Meanwhile, Bitcoin's price has dropped by more than 7% in the last seven days due to speculation regarding the Mt Gox Bitcoin release. As per speculations, the Mt Gox payout would have triggered a massive sell-off in the crypto market. Bitcoin is trading at an average price of $21,650 at the time of writing.

Bitcoin's 24-hour trading volume has declined by 10% to stand at $21.77 billion, and the global crypto market cap has again lost its vital $1 trillion mark, dropping by 1.5% over the past day. While the 24-hour trading volume has dropped by 6% to stand at $44 billion, BTC has registered a liquidation of around $25 million in the last 24 hours.

On the other hand, Shiba Inu's SHIB maintains a positive trade, with a 1.9% increase, thanks to the upcoming Shibarium launch. Despite other major currencies facing a pullback, SHIB has been able to maintain this positive trade. The Shibarium launch is expected to happen on March 11, and if it performs as expected, Shiba Inu's price might claim its next bull run above $0.000013. However, the currency's 30-day moving average is showing a gradual decline and might drop below its 200-day average in the next seven days. It is expected to reverse its move and start an upward trend after the Shibarium launch.

As with any new development in the crypto market, there have been warnings against increased scams in connection with Shibarium. The network's developers and admins have taken to social media platforms to urge caution and advise community members to wait for official accounts to release further information. This warning comes after various Shibarium beta or scan links were discovered, with some community members even losing their holdings as a result.

Overall, the crypto market remains uncertain, with events such as the Mt Gox Bitcoin payout postponement and Shibarium launch stirring up investor caution. It is essential to stay vigilant and do thorough research before investing in any cryptocurrency.

Federal Reserve Chairman Jerome Powell has cautioned that interest rates are likely to rise higher than expected in the coming months as the central bank looks to slow down a growing economy. The warning came as Powell addressed the Senate Banking Committee, where he highlighted that the current trend shows that the Fed’s inflation-fighting job is not over. Inflation, as gauged by personal consumption expenditures prices, was still running at a 5.4% pace annually in January, well above the Fed’s 2% long-run target.

Powell indicated that the Fed is ready to take action to keep inflation under control. If the data were to indicate that faster tightening is warranted, the Fed would be prepared to increase the pace of rate hikes. However, Powell also noted that the current policy stance remains appropriate and that the Fed is committed to achieving maximum employment and price stability.

Powell also noted that while there has been some progress on inflation in areas such as housing, there is little sign of disinflation when it comes to the important category of services spending excluding housing, food, and energy. This suggests that there may be more inflationary pressures in the economy than previously thought.

The Fed has been gradually raising interest rates since 2015 in an effort to keep inflation in check and ensure sustainable economic growth. However, the pace of rate hikes has been slow, with the Fed only raising rates a total of four times since December 2015. Powell’s warning suggests that the Fed may be looking to accelerate the pace of rate hikes to address inflationary pressures in the economy.

Higher interest rates can have a variety of effects on the economy. They can help to control inflation by making borrowing more expensive, thereby reducing spending and demand. However, higher interest rates can also slow economic growth by reducing investment and consumer spending. As such, the Fed will need to carefully balance its desire to control inflation with its mandate to support maximum employment and price stability.

In summary, Powell’s warning of higher interest rates suggests that the Fed is ready to take action to address inflationary pressures in the economy. However, the Fed will need to carefully balance its desire to control inflation with its mandate to support maximum employment and price stability.

The Shiba Inu ecosystem is eagerly awaiting the release of the Shibarium layer 2 scaling solution, which is expected to result in more token burns and attract more Ethereum-based whales to the platform. Despite the recent price drop, WhaleStats data shows that SHIB is the most common cryptocurrency held by the top 100 Ethereum whales, with a 12% share. However, this only represents around 10% of the altcoins owned by these whales, as most investors now hold more stablecoins.

Recently, one of the world's largest Ethereum whales bought hundreds of millions of dollars worth of Shiba Inus, acquiring 118,058,494,947 SHIB worth $1.34 million. This investor now owns nearly 40% of their cryptocurrency holdings in SHIB, with a total value of over $225.34 million.

Although SHIB displayed a strong recovery in early January 2023, pushing the price above the 50-day EMA and generating a bullish sentiment, the short-term outlook has since turned bearish. The current price of SHIB is $0.00001104, down by over 1% in the last 24 hours. The first hurdle for bulls is expected to be around $0.00001396, followed by $0.00001525.

So basically, they gotta change their plan because the way they were gonna do things could get them in trouble with securities laws. Specifically, the part about moving around crypto to make sure everyone's accounts are balanced and up-to-date. They'll have to come up with a new plan that stays within the legal guidelines.