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

The price of the 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.

In the early hours of Mar. 10, the price of BTC briefly dipped below $20,000 to $19,945 before recovering to hover just above $20,000, according to data from CoinMarketCap. 

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

The announcement that Silvergate Bank, one of the key banks in the United States that services crypto firms, had entered into voluntary liquidation on Mar. 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 Mar. 9 revealed that United States crypto miners could eventually be subject to a 30% tax on electricity costs under a budget proposal by President Joe Biden aimed to “reduce mining activity.”