The cryptocurrency market has seen extreme volatility during the month of March due to a number of major events that have led to both price drops and spikes. The shutdown of the prominent cryptocurrency exchange Binance was a key factor in the current market downturn. However, Ripple maintained its superiority throughout the month.
With Bitcoin marking a new all time high for the year, to general market volatility amid the recent USS banks saga, despite the volatility, March 2023 has proved a significant month in the developing history of the cryptocurrency sector. BTC, amid a bad 2022 market year, reclaimed the $28K mark setting a new ATH for the year above the level.
Authorities in the USA have stated that they would be cracking down on Binance. Investors in cryptocurrencies were scared when authorities voiced worries that Binance was not in conformity with local legislation. The outcome was a drop in the value of all Binance-traded cryptocurrencies, including Bitcoin and Ethereum.
Yet Ripple was an exception in this pattern despite the ongoing lawsuit. The value of the cryptocurrency held steady for most of the month and even increased as the month came to a close. This is probably because of the solid foundations on which Ripple is built and its increasing popularity within the banking sector.
Early in the month, the market dropped dramatically because of another important occurrence. Investors went into a tailspin after the failure of SVB and Silvergate, two big banks with significant holdings in the cryptocurrency business. These banks were viewed as essential in the institutional acceptance of cryptocurrencies, hence their failure was a major setback for the sector.
A memorable month for crypto?
The cryptocurrency market, however, showed remarkable resilience, and by the month’s conclusion, prices had begun to climb back up. The price of Bitcoin, the biggest cryptocurrency in the world, which has hovered around the 28K level for the better part of the month, underwent a meteoric rise, from $19,000 to over $28,000 in a matter of days. The price of Ethereum, the second most valuable cryptocurrency, increased as well, from about $1,500 to over $1,800.
Overall, March has been a tumultuous month for the cryptocurrency market, with numerous major events leading to both price drops and spikes. In spite of the general market slump brought on by the Binance crackdown and the bankruptcy of SVB and Silvergate, Ripple demonstrated supremacy and stayed reasonably steady throughout the month. More volatility, but also increased stability and acceptance, is to be expected as the cryptocurrency market continues to develop.
