Bitcoin Drops As Silvergate Capital Crumbles
By Laxmikant Khanvilkar
Cryptocurrencies are hit by yet another crisis. This time it is crypto-friendly bank Silvergate Capital (SI) survival concerns that drove Bitcoin and other leading virtual digital assets lower.
California-based Silvergate said in a filing late Wednesday that the impact of recent events – notably the FTX exchange collapse and subsequent regulatory inquiries – raised questions about the bank’s ability to “continue as a going concern.”
The looming concerns on Silvergate sent the world’s largest cryptocurrency by market value Bitcoin lower towards mid-$23,000 area.
Ethereum, the second-largest cryptocurrency, was up 0.5% to about $1,650.
Meanwhile, Federal Reserve speakers “continue to talk about higher for longer, and some are even alluding to the difficulty of achieving a soft landing”, that should keep risky assets depressed for some time.
The global crypto market capitalization has decreased by 1.37% in the last 24 hours, currently standing at $1.07 tn. The total crypto market volume over this period is $41.79 bn, representing a 14.57% decrease. Decentralized finance (DeFi) has a total volume of $4.28 bn, making up 10.25% of the total crypto market volume. Stable coins account for 90.23% of the total crypto market volume, representing a volume of $37.70 bn. Bitcoin’s dominance is at 42.35%, 0.10% higher than it was during the same period.
Analysts are driving optimism from BTC’s rhythm of higher highs and higher lows, which is still in place and they see it staying there until the recent low of $22,800 is not taken out.
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