European Bank’s Woes Results In Bitcoin Sliding Below $25k

Twitter icon  •  Published 1 year ago  •  Hassan Maishera

Bitcoin has lost more than 5% of its value and is now trading below $25k per coin following the woes of European banks on Wednesday.

TLDR;

  • Bitcoin has lost more than 5% of its value over the last 24 hours and is now trading below $25k.
  • The poor performance comes as investors reacted to the woes of European banking stocks on Wednesday.

Bitcoin Fails To Maintain Support Above $25,300

Bitcoin dropped below the $24,500 level on Wednesday as investors reacted to the poor performance put on by European bank stocks during the trading hours of Wednesday. 

The world’s leading cryptocurrency failed to maintain support above $25,300 after rallying above $26k earlier this week. 

However, the troubles of Credit Suisse affected the broader European banking sector, resulting in the crypto market losing more than 3% of its value over the last 24 hours.

At one point, Bitcoin dropped to $23,946 before pulling up to now trade at $24,358 per coin. Credit Suisse’s stock price suffered huge losses on Wednesday after the bank’s largest investor, Saudi National Bank, revealed that it would not invest beyond its existing $1.5 billion investment. 

The announcement saw Credit Suisse’s stock price plummet. However, the Swiss National Bank, announced that it would provide Credit Suisse with liquidity if necessary, halting the damages for the time being. 

The cryptocurrency market reacted negatively to the news, with the prices of most coins down by more than 5% over the last 24 hours. The collapse of the Silicon Valley Bank, Signature Bank, and Silvergate Bank in recent days rocked the broader crypto market. Combined with the current troubles of Credit Suisse, it is understandable that the market reacted the way it did. Credit Suisse’s troubles affected the broader European market, with shares of most banks in the continent suffering losses during yesterday’s trading session. 

Bitcoin previously rose above $26k earlier this week following the release of a mildly upbeat consumer price index (CPI) inflation data for February. The CPI increased by 6% from the previous month’s reading, offering investors hope that the US Federal Reserve would adopt a more dovish approach to the market. 

Ether and Other Altcoins Also Underperform

Bitcoin’s performance usually dictates how the broader market performs, and this time around, it wasn’t any different. Ether is down by more than 3% today and is now trading at $1,650 per coin.

Cardano, Dogecoin, polygon, Solana, and Shiba Inu, have all lost more than 5% of their values over the past 24 hours. The market could be on its way to a slow recovery as Bitcoin has been trading above $24k for the past few hours.

 

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Author

Hassan Maishera

Hassan is a Nigeria-based financial content creator that has invested in many different blockchain projects, including Bitcoin, Ether, Stellar Lumens, Cardano, VeChain and Solana. He currently works as a financial markets and cryptocurrency writer and has contributed to a large number of the leading FX, stock and cryptocurrency blogs in the world.