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$50 billion drains from crypto market cap in an hour as bad news pile up

$50 billion drains from crypto market cap in an hour as bad news pile up

Within a very short timeframe, the majority of the cryptocurrency market has taken a massive turn for the worse, losing as much as $50 billion to its market capitalization in one hour as the news of possible adverse implications for the sector continued to arrive one after the other.

Indeed, the crypto market’s total cap plummeted from $1.07 trillion to $1.02 trillion in one hour on March 3, coinciding with a series of unfavorable events, including the crash of the crypto bank Silvergate, the upcoming ‘hot’ Consumer Price Index (CPI), and Mt. Gox creditors possibly receiving massive Bitcoin (BTC) reimbursements, creating ‘FUD’ (Fear, Uncertainty, and Doubt).

Total 1-day crypto market cap. Source: CoinMarketCap

Series of unfortunate events?

Specifically, some financial experts believe that the next CPI report at the Federal Reserve’s March meeting could indicate an acceleration of inflation by as much as 50 basis points (bps), including TD Securities’ Priya Misra and Cetera Investment Management’s Gene Goldman, as they told Reuters in late February.

On top of that, many crypto industry participants are worried over the reports that the upcoming repayments to creditors of the failed crypto exchange Mt. Gox could lead to a major Bitcoin price slump, considering that its 2019 balance sheet totaled 142,000 BTC, today worth over $3 billion.

More recently, the crypto market has woken up to the news that the stock of Silvergate Capital Corp (NYSE: SI) had declined by over 55% and continues to drop as the crypto-focused bank said it would not be able to file its annual report with the United States Securities and Exchange Commission (SEC) on time.

Cryptocurrencies decline

Meanwhile, the fears over these events have threatened the gains that the largest cryptocurrencies by market capitalization have been accumulating since the year’s turn on the wings of renewed optimism, slashing the price of Bitcoin by 4.23% on the day.

Bitcoin 24-hour price chart. Source: Finbold

During the same timeframe, Ethereum (ETH) lost 4.40%, XRP 3.04%, Cardano (ADA) 4.74%, Polygon (MATIC) 3.5%, Solana (SOL) 3.85%, Shiba Inu (SHIB) 4.48% to their value, while Dogecoin (DOGE) has declined by 6.08%, according to the data retrieved by Finbold on March 3.

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