Investors are always intrigued and amazed to see the numbers grow bigger. The higher the numbers get, the more attractive they become to investors.
When it comes to numbers, even the crypto market valuation is no exception. Even the $1 trillion market capitalization has no exception as the investors want to see it go higher.
Rise and fall of Crypto Market Valuation
Right from the start of 2023, the crypto market valuation started to grow larger. Investors kept increasing their investments in cryptocurrencies.
This resulted in pushing the overall market capitalization of the crypto industry. The overall crypto market capitalization was pushed over the $1 trillion mark in the mid of January.
Since then, the overall cryptocurrency market capitalization had remained over the $1 trillion threshold. The data shows that it had remained above the particular level for 48 consecutive days.
The data shows that the cryptocurrency market valuation has lost its $1 trillion mark and it is below that level.
March 9 Brought in the Demise
The market capitalization of the cryptocurrency industry sustained the negative pressures for a long time against all the odds. Unfortunately, the crypto industry ended up losing its $1 trillion mark.
It was on March 9, when the overall market valuation of the crypto industry lost its $1 trillion milestone. This happened because the valuation kept on collapsing for a very long time.
Many expected that the market valuation of the crypto industry would fall for a few hours until getting stabilized.
In the past 24-hours, the crypto market has shed 8.6% of its overall valuation. Following the dip, the valuation has plunged to a low of $914 billion.
This is the lowest mark that the overall crypto market valuation has hit since January 13, 2023.
Concerns about the Bank Industry in the US
Having witnessed such a great demise in the valuation, the entire crypto community wants to know what has caused the huge decline.
One explanation for the decline is the stability of the banks which has become a questionable matter among the crypto communities.
Not many banks from the United States are interacting with or facilitating crypto firms. For years, only two major banks; the Silvergate Bank (SI) and the Signature Bank have continued facilitating the crypto firms.
Another bank that was providing services to the crypto firms was the Silicon Valley Bank (SVB). Turns out, the US regulators have shut down both banks.
According to the reports, Silvergate Bank ended up shutting down on March 8. As for the Silicon Valley Bank, it was shut down by the CDFPI of the US on March 10.
Now the only bank left supporting the major crypto firms in the United States is the Signature Bank. Due to the recent happenings, the overall environment has become very uncertain throughout the banking industry in the US.
Uncertainty Within the Crypto Industry
There is now a lot of uncertainty among the crypto communities pertaining to the lack of fiat gateways in the US. As a result, the investors have resorted to withdrawing away from the sector, which in return is pulling down the crypto market valuation.
The uncertainty is not just among the crypto investors but also the crypto exchanges, brokerages, and any kind of crypto-related firms, including the intermediaries.
For now, most of the crypto firms have sided with Signature Bank as the last result. Then there is Kraken which has decided to launch its own banking firm to deal with the situation for good.
There is no telling what the future holds for the Signature Bank going forward. According to many market analysts, the Kraken exchange has made the right decision of launching its own banking solution to deal with fiat cryptocurrencies.
This way, the exchange will be able to let its clients and investors withdraw funds in fiat using its own banking solution.