Crypto meltdown: Over $70 billion wiped off crypto market in 24 hours

The meltdown in the cryptocurrency market was triggered by a sell-off in the U.S following the collapse of a crypto-focussed lender, Silvergate Capital.

On Friday, Bitcoin fell below the $20,000 mark hitting a two-month low. As per a report by CNBC, the cryptocurrency market saw more than $70 billion wiped off in 24 hours.

“There is just little reason to buy bitcoin now as the market is saturated with negative developments, not just specifically for the crypto industry, but also for the wider financial market as well,” Yuya Hasegawa, an analyst at Japanese crypto firm Bitbank, told CNBC.

On Wednesday, Silvergate Capital said it was planning to wind down operations and liquidate voluntarily. This development also reflects how the collapse of major cryptocurrency exchange FTX continues to have an impact on the industry. FTX was a big customer of Silvergate.

Meanwhile, U.S. Federal Reserve Chairman Jerome Powell's recent comments have opened the door to more rate hikes and at a faster pace than earlier anticipated. The high interest rates have particularly been impacting the cryptocurrency market and Powell's comments are another contributing factor to the crypto meltdown.