VeChain is among the hardest-hit digital asset after Silvergate decided to walk back on providing cryptocurrency services. Nearly $200 million worth of cryptocurrencies were liquidated last week making Bitcoin fall below the $22,000 mark. You can read more details about the Silvergate-induced crash that affected the markets here. VET is down for three consecutive days despite announcing a collaboration with the Boston Consulting Group at The HiVe summit.
Also Read: VeChain: When Will VET Reach $1?
VeChain: Here’s Why VET Might Dip Below $0.020
VET dipped from a high of $0.031 to a low of $0.021 in the last seven trading days. The cryptocurrency had doubled in price since the start of January and is now retracing due to profit bookings and sell-offs.
The overall cryptocurrency markets remain on the razor’s edge due to various macroeconomic factors affecting its growth. The important factors are:
- SEC chair Gary Gensler’s statements about cryptocurrencies. He specifically claimed that “everything but Bitcoin” could be considered a security.
- FED chair Jerome Powell warned Bitcoin could fall to $0 if US CBDC is launched.
- US President Joe Biden calling to double capital tax gains.
Also Read: VET To Reach $0.03 In The Next Leg?
The above three developments take a potshot at cryptocurrencies sending fears in the markets that things could go haywire. Therefore, Bitcoin and leading altcoins could slip south this month due to constant negativity and fears. If Bitcoin slips, VeChain goes in tandem with BTC and could shed more gains in the coming days.
In conclusion, there are more chances for VeChain to fall below $0.020 next than for it to go up in price. VET reaching the $0.1 mark seems to be a distant dream at the moment due to weak economic factors.
Also Read: VeChain Price Prediction For March 2023
At press time, VeChain was trading at $0.022 and is down 4.1% in the 24 hours day trade. VET is also down 92.15% from its all time high of $0.28, which it reached in April 2021.