Cryptos Plunge Again Amidst Banking Sector Ripples

Cryptocurrency market capitalization dropped more than 4 percent in the past 24 hours even as markets grappled with developments in the banking sector and a fresh batch of economic data releases added to the uncertainty surrounding the Fed’s Monetary Policy.

Banking sector concerns were aggravated in Europe with Credit Suisse admitting to material weaknesses in its reporting, triggering a sell-off in bank stocks. Credit Suisse dropped more than 25 percent and its main promoter has refused further infusion.

Rating agency Moody’s had on Tuesday changed its outlook on the U.S. banking system to ‘negative’ from ‘stable’ in the backdrop of the collapse of Silvergate Bank, Silicon Valley Bank and Signature Bank.

Meanwhile, data released by the U.S. Bureau of Labor Statistics just a while ago showed Producer price inflation declining 0.1 percent in February. Expectations were for it to rise 0.3 percent.

Data released by the U.S. Census Bureau showed Retail Sales dropping 0.4 percent in February versus expectations of a 0.3 percent decline. The previous reading was 3.2 percent.

The Dollar Index (DXY) which measures the strength of the Dollar against a basket of 6 currencies meanwhile rebounded sharply to 104.68. The more than 1-percent rally in the index comes amidst a reassessment of the likely course of the Fed’s monetary policy path.

Sentiment remains muted even as crypto watchers continue to look for clues on why regulators shut down the crypto-friendly Signature Bank. Bloomberg has reported that U.S. prosecutors were conducting a criminal probe into Signature Bank’s work with crypto clients before regulators seized the lender. There are also reports that Department of Justice was investigating whether Signature Bank took enough precautions to stop clients’ possible money laundering.

Reports of crypto bank Anchorage Digital laying off 20 percent of its staff citing the uncertain regulatory landscape, Meta announcing that it would wind down its investments in NFTs and announcing another round of layoffs also added to the negative sentiment.

Crypto market capitalization is currently at $1.09 trillion, down 4 percent in the past 24 hours.

Bitcoin (BTC) traded between $26,115.88 and $24,142.48 in the past 24 hours. It is currently changing hands at $25,108.78, down 3.1 percent in the past 24 hours.

Ethereum (ETH) also has shed 2.7 percent overnight to trade at $1,694.43. Ether’s 24-hour trading range was between $1,779.92 and $1,660.55.

4th ranked BNB (BNB) shed 1.8 percent overnight to trade at $310.88. Binance Holdings Ltd has announced the suspension of deposit and withdrawal services via bank transfers and card payments for U.K. customers from May 22 after its local banking partner Paysafe stopped providing support.

5th ranked USD Coin (USDC) traded between $1.00 and $0.9976 in the past 24 hours. Meanwhile, Jeremy Allaire, the co-founder and CEO of Circle that issues the USDC stablecoin has expressed confidence on recovering the amount of $3.3 billion that was stuck in Silicon Valley Bank.

78th ranked Singularity NET (AGIX) was the top gainer with an overnight rally of more than 24 percent. 41st ranked Stacks (STX) added 16 percent overnight. 56th ranked Conflux (CFX) followed with gains of more than 13 percent.

24th ranked OKB(OKB), 59th ranked Maker (MKR) and 38th ranked ApeCoin (APE) have declined more than 5 percent in the past 24 hours.

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by Avila SebastianRTTNews Staff Writer

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