Bitcoin Falls Below $20K Amid Biden Budget, Silvergate Collapse

Bitcoin (BTC) briefly fell below $20,000 for the first time in almost two months, following the latest budget from United States President Joe Biden and the collapse of “cryptobank” Silvergate.

The price of BTC fell to $19,945 on March 10 before recovering to just above $20,000, according to data by CoinMarketCap.

Bitcoin had a stellar start to 2023, but fell as much as 5% at one o’clock on March 3 amid uncertainty at Silvergate. The price doesn’t seem to have been able to rise since then.

Bitcoin price chart for the last seven days. Source: Cointelegraph Markets Pro

The announcement by Silvergate Bank, one of the key banks in the United States that serves crypto businesses, had goes into voluntary liquidation on March 8 looms as a possible strong headwind for the crypto industry.

Connected: Bitcoin price falls to $20.8K as regulatory and macroeconomic pressures mount

In the meantime, additional explanatory budget paper on March 9 revealed that crypto miners in the United States could eventually be subject to a 30% tax on electricity costs under Biden’s budget proposal, which aims to “reduce mining activity.”