The ongoing uncertainty surrounding Silvergate bank continues to affect the price of the number one digital asset.
According to a report by the team at Santiment, the anxiety surrounding the bank’s fate is hurting Bitcoin‘s recovery efforts. Furthermore, if Bitcoin continues to consolidate at $22.3k, it risks falling to $19.5k.
The team at Santiment explained:
As major crypto companies have ended their relationships with the bank, the market has also seen a sharp decline and is currently under pressure due to uncertainty about further consequences.
Experts warns that if BTC fails to maintain its position around the $22.3K range, the price could see a steep drop, possibly reaching as low as $19.5K.
A Bitcoin Drop to $19.5k Would be Catastrophic
The Santiment team added that in the event Bitcoin drops to $19.5k, it would bring down the entire crypto market with it.
© Solana Daily Brief, Inc. All Rights Reserved. This article is for informational purposes only. It is not to be used as legal, tax, investment, financial, or other advice.If Bitcoin were to reach the $19,500 level, there could be a catastrophic decline of around 15-25% in the value of altcoins, potentially leading to a crypto market collapse.
As the largest cryptocurrency by market capitalization, Bitcoin remains susceptible to further decline, particularly if negative news regarding the crypto sector emerges, like a Sword of Damocles hanging over its head.