Crypto assets like bitcoin and ethereum are always known to be affected by news, and the latest news today that resulted in a market collapse is the Silvergate fallout. This news has led to a sharp decline in two of the biggest crypto assets in the market.
according to a Bloomberg reportCrypto platforms are now cutting ties with the US-based crypto-friendly bank, following the disclosure of its review of whether it can remain viable. So far, Coinbase and Digital Asset Capital Management are the latest on the list to end their partnership with Silvergate.
Sharp decline in Bitcoin (BTC) and Ethereum (ETH)
Following negative news related to crypto-focused bank Silvergate, Bitcoin and Ethereum have both seen massive price drops of 4.5% and 4.7% respectively in the past 24 hours. Both the assets have seen a significant difference in high and low in the last 24 hours.
while writing, btc price Made a 24-hour low of $21,921 and a high of $23,541. Conversely, ETH price also saw some notable moves with a 24-hour low of $1,550 and a high of $1,653.
In particular, bitcoin has been showing signs of upcoming bearish trend After its massive 40% growth in January and its slow-Below rally in February.
Compared to January when BTC surged from the $16,000 region at the end of last year to a high of $23,799 as of January 29, the largest crypto by market cap only rallied from there to $25,000 in February, up 40% over the past month. There was a slight rally in comparison to the %. Saw it a month ago.
Currently, the BTC chart is still showing signs of a sustained downtrend as the asset looks set to decline below our previously marked out support at $22,000. On the other hand, ETH price action is not far from diverging.
In the past week, Ethereum Despite the upcoming Shanghai launch, it is showing signs of a bearish trend after a gradual decline of almost 5% over the past 7 days. The property has not only faced a fall in price but also in market cap.
Over the past 15 days, more than $18 billion has been removed from the market cap of ETH, which has dropped from a market cap of $206 billion on February 16 to $188 billion as of March 3. Despite this, the property still ranks as the second largest. Crypto by market cap after bitcoin.
The global crypto market capitalization has also suffered a 5% drop in valuation over the past 24 hours, alongside the decline of BTC and ETH. Although the crypto market was able to maintain a balance amid the regulator’s crackdown, the Silvergate saga has a greater impact on the market.
Silvergate relationship with the crypto industry
Silvergate is an American bank that has served the crypto market in general. The bank allowed rapid transfers of funds between accounts and crypto exchanges such as Coinbase and Crypto.com as well as over-the-counter trading desks with its Silvergate network.
After the crash of the FTX exchange last year, the bank faced a run on deposits, as the exchange was a major client. Afterwards delay Its annual 10-K report with the Securities and Exchange Commission (SEC).
This week, the bank revealed it is reviewing whether it can still continue to operate. The update sent ripples in the listing of its partnerships, as well as a drop in its stock price. Coinbase announced on Thursday that he has severed his relationship with the bank,
Shortly after that, other crypto platforms and firms such as Gemini, Crypto.com, and crypto hedge fund Digital Asset Capital Management revealed they were cutting ties with the US-based crypto-friendly bank. According to Bloomberg, Richard Galvin, co-founder of Digital Asset Capital Management, has already said that the company is looking to move away from Silvergate and look into Swiss banks.
So far, Silvergate stock with the ticker SL has fallen more than 10% from Wednesday’s high of $14 to $5.72 at the time of writing.
Credit : www.newsbtc.com