• Bitcoin (BTC) dropped 6% in the past 24 hours to sink below $21,000 for the first time in seven weeks as investors continued to fret about the fallout from crypto-friendly bank Silvergate Bank’s implosion.
• Silvergate Capital (SI), the parent company of the lending focused bank, said that Silvergate Bank would „voluntarily liquidate“ its assets and shutter operations.
• Other major cryptocurrencies declined, with ether sinking 7%.
Bitcoin Dips Below $21K After Silvergate Bank Shutdown
Cryptocurrency markets were shaken as news of Silvergate Bank’s closure caused a ripple effect across other major coins. Bitcoin (BTC) dropped 6%, sinking below $21,000 for the first time in seven weeks as investors reacted to the news. Ether also experienced losses of 7%.
Silvergate Bank Shutdown
The crisis began when Silvergate Capital (SI), parent company of the lending focused bank, announced that it would be „voluntarily liquidating“ its assets and shutting down operations. This is expected to have a profound impact on crypto markets as customers scramble to find new sources of liquidity.
Reaction from Investors
Tactive Wealth Advisor Eddy Gifford shared his reaction to the news: “This remains a tough environment for crypto given the fallout from Silvergate’s closure.“ The sentiment was echoed by many other investors who are concerned about how this event could affect cryptocurrency prices going forward.
Consensus 2023 Conference
Head of Firmwide Research Alex Thorn will speak at Consensus 2023 on “Bitcoin and Inflation: It’s Complicated” — an important topic considering recent events and their potential impact on inflation rates around the world.
Overall, cryptocurrency markets have been shaken by news of Silvergate Bank’s closure and there are still many unanswered questions about how this event will affect prices going forward. With market volatility likely to remain high over the coming days, investors should proceed with caution until more information becomes available.