Cryptocurrency markets lost in excess of 70 billion dollars in the 24 hours leading up to the bitcoin price dropping to eight dollars below $20,000.
On Friday, Bitcoin’s value dropped 8% to below $20,000 after a U.S. stock market sell-off and the collapse of a lender that focuses on cryptocurrency.
The cryptocurrency market lost more than $70 billion in value over 24 hours. Bitcoin was trading 3% lower at $19,873.29, while Ether was down 3% at $1,402.73.
Several factors contributed to the crypto sell-off, including the close correlation between cryptocurrency prices and the tech-heavy Nasdaq index.
Additionally, the collapse of Silvergate Capital, a major lender to the crypto industry, and the failure of Silicon Valley Bank, a major bank in the technology start-up space, also affected cryptocurrency prices.