Bitcoin price plummeted to nearly $20,000. This is Bitcoin’s most significant price drop since early 2023.
Bitcoin price today 10/3 plummeted after the Silvergate event closed. The US cryptocurrency miner is set to face a 30% tax on electricity costs under President Joe Biden’s budget proposal to “reduce mining.”
Silvergate Bank – the USD transaction processing partner of many major crypto companies in the US announced the shutdown also made many investors worried, the incident could trigger a new crisis in the crypto market.
Not only Silvergate but the bad business situation is also affecting Silicon Valley Bank. Recently, this bank has just moved to reassure investors about the stock losing up to 60% of its value. The price move comes just a day after Silicon Valley Bank sold $2.25 billion worth of shares to bolster its balance sheet.
The four largest US banks, JP Morgan, Citigroup, Wells Fargo, and Bank of America also lost up to $52.4 billion in market value after yesterday’s trading session. Along with the decline of the US financial industry, the pressure to increase interest rates is pressing on borrowers and gradually spreading to other markets, including crypto.
Along with the decline of Bitcoin, red has covered the entire cryptocurrency market. This morning, the price of Ethereum has dropped to $1,440 (down 7%), the same is Binance Coin – $280 (down 4%), Solana – $17.5 (down 7.5%), Dogecoin – $0.066 (down 7.5%). down 8.5%),… The discount rate is getting higher and higher for small-cap value coins.
There are many reasons for the Bitcoin drop. Accordingly, it has just emerged that the US Treasury Department wants to impose a 30% excise tax on energy costs for cryptocurrency mining.
The new provision will impose an excise tax on the electricity costs of mining companies. This tax rate takes effect from December 31, and increases by 10% per year for the next 3 years.
On the same day, New York State Attorney General (USA) – Letitia James sued KuCoin for allegedly failing to register as a stock and commodity brokerage agent, branding himself as an exchange and causing investors to get risks.
Another major exchange, Huobi, is also having problems of its own. During the Bitcoin price correction early this morning, Huobi’s HT token lost up to 93% of its value. From a price of 4.7 USD, the price of HT token has dropped to 0.31 USD, although it quickly recovered to 3.8 USD a few minutes later.