The world’s largest cryptocurrency by market capitalization started off the month seeing its token value decrease by nearly 7%.
This market movement can be seen as disappointing, especially taking into account how well the asset performed in January when it gained over 40% in value. As for February, bitcoin fluctuated throughout the month but ultimately remained around the same level as it started, $23,300.
However, in the early days of March, the market-leading cryptocurrency has not been able to withstand selling pressure. Over the past couple of days, $BTC saw a 6.7% lost in value, breaking the previously established resistance of $23,300—currently trading at $22,300.
The reason for this most recent retraction is the reports that the U.S. Government is going after crypto lending banks, specifically Silvergate.
The bank, saw a massive exodus of over $8 billion in deposits from its cryptocurrency customers, as its primary business block crumbled under the industry’s collapse. Silvergate saw a $1 billion deficit in the last quarter of the year.
For many in the crypto space, this is another lasting symptom of the major crypto crisis of 2022 which saw the exchange FTX going bankrupt. Now, the market faces another serious difficulty, as the Silvergate case will undoubtedly make it more difficult for cryptocurrency companies to use banking services in the future.
Government Going After Binance?
A group of American senators has issued a scathing criticism of Binance, the world’s largest cryptocurrency exchange. In a letter signed by Senators Elizabeth Warren, Chris Van Hollen, and Roger Marshall, the exchange was described as “a hub for illegal financial activities,” and has facilitated $10 billion in payments to criminals and sanctions evaders.
The senators also accused Binance of maintaining a “weak” anti-money laundering compliance program as part of its business strategy.
The exchange was one of the first to see the effects of these stricter banking policies on cryptocurrency companies. Back in February, Binance had to halt all US Dollar transfers in America, due to Signature Bank revealing that it would reduce its acceptance of blockchain deposits and exposure to cryptocurrency assets.