Bitcoin slips under $20K amid Biden budget, Silvergate collapse

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

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

Bitcoin had a stellar start to 2023 but fell as much as 5% in an hour on March 3 amid uncertainty at Silvergate. The price doesn’t appear to have been able to lift since.

Price chart of Bitcoin over the last seven days. Source: Cointelegraph Markets Pro

The announcement that Silvergate Bank, one of the key banks in the United States that services crypto firms, had entered into voluntary liquidation on March 8 has emerged as a possible strong headwind for the crypto industry.

Related: Bitcoin price drops to $20.8K as regulatory and macroeconomic pressure mounts

Meanwhile, a supplementary budget explainer paper on March 9 revealed that United States crypto miners could eventually be subject to a 30% tax on electricity costs under a Biden budget proposal that aims to “reduce mining activity.”