Many cryptocurrencies started Friday with a decline. Major cryptocurrencies, especially Bitcoin and Ethereum, fell more than 5 percent as customers fled the crypto bank Silvergate, whose shares fell 58 percent during US trading on Thursday. Most of the other top 10 cryptocurrencies by market cap have seen similar dips to BTC and ETH. Here are the details…
Bitcoin and Ethereum price affected by Silvergate event
Crypto-friendly bank Silvergate Capital (SI) has lost more than 50 percent of its value on fears it won’t survive. In a document released late Wednesday, California-based Silvergate said the impact of recent events (particularly the FTX stock market crash and subsequent regulatory investigations) raises questions about the bank’s ability to continue with continued “concern.” The news resulted in the downgrade of at least two sell-side ratings and the withdrawal of a wide variety of crypto firms from Silvergate.
Shares fell 58 percent shortly before Thursday’s trading closed. Markets in the US have not yet opened. Concerns over Silvergate have had an impact on the world’s largest cryptocurrency by market cap. Bitcoin dropped 4.5 percent in the last 24 hours to $22,410. cryptocoin.com As we know, the coin had risen to $ 23,541 before falling to this level. Ethereum is changing hands at $1,571, down 4.6 percent. Still, cryptocurrencies did not experience an extreme drop.
Julius de Kempenaer, senior technical analyst at StockCharts.com, said that Silvergate-related news should not be seen as much of a negative catalyst as it “should be viewed positively.” “The institutions are a little nervous as Silvergate seems to be having issues,” said Nick Ruck of ContentFi, a Web3 startup studio. Ruck will also increase its circulating supply as another source of volatility, Mt. Gox pointed to his Bitcoins.
Coinbase experienced connection issues
The rapid sell-off took a toll on major crypto exchange Coinbase, which started experiencing connectivity issues during the night. Other major crypto exchanges, including Binance, Bitfinex, Kucoin, OKX, and Kraken, did not report similar issues. After holding steady at roughly $23,500 for most of the past day, Bitcoin’s price dropped to $22,020 as trading hours began in the Asian region. It rallied just below $22,400 after the decline.
Ether has seen a similar pattern and dropped to $1,550 after hovering around $1,650 with limited change the other day. According to CoinMarketCap, Bitcoin’s market cap fell by over $20 billion to $431.9 billion. The overall market cap of the cryptocurrency is $1.07 trillion. According to Coinglass, open interest in Bitcoin futures has dropped 8.8 percent in the last four hours. Open interest for ETH fell 5 percent.
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