Signage is not visible to a pedestrian. EthereumThe top of the list, and Bitcoin Outside the Hong Kong Digital Asset Exchange Ltd. Digital currency trading site Hong Kong, ChinaYou can find more information at Thursday, June 24, 2021.
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Cryptocurrency values dropped on Friday as investors considered the potential implications of Silvergate Capital’s struggles. We weighed the possibilities of a possible bankruptcy in the crypto bank for the broader crypto industry.
According to Coin Metrics, Bitcoin dropped more than 5% to $22,261.22. Ether also traded at $1,555.37 and lost 5.5%.
The downturn came late Thursday night after several crypto companies said they would no longer accept or initiate payments from or to any country. Silvergate – including Coinbase, Galaxy Digital, Circle, Paxos Bitstamp. SilvergateThe bank that has been the most popular for cryptocurrency business owners, notified Wednesday It said it would not meet the extended deadline for filing its annual report, and that it might not be able continue to operate for another 12 months.
“The bearish turn could certainly be a delayed reaction to Silvergate’s ongoing issues,” Clara Medalie Director of Research Kaiko. “Many large exchanges and market makers partner with Silvergate for rapid transactions between entities, and any halt inactivity could have an impact on global crypto liquidity.”
Cryptocurrency prices remained steady throughout Thursday while Silvergate shares fell 57%.
“To start 2023, crypto markets enjoyed a solid rally to six-month highs following a slowdown in FTX-related contagion, but the Silvergate news has renewed concerns around liquidity and risk,” Medalie added.
Bitcoin After declining by 60% in 2022, it has recovered to $17,000 this year. This was due to the pullback in risk assets as well as the implosion of FTX, a major Silvergate customer. Even after the recent decline, bitcoin is up more than 200% in the past 12 months.
Cryptocurrency markets showed resilience on Friday, despite news of a potential fallout from Silvergate woes. Bitcoin and Ether both dropped slightly, with traders experiencing millions in long liquidations. Analysts suggested that there was no obvious reason for the price drops, as macro factors, technical indicators, and liquidations were all accounted for.
Noelle Acheson, author of “Crypto is Macro Now”, noted the market’s resilience and suggested that the move was largely structural. February saw both Bitcoin and Ether suffer a small drop of 6% and 8.5%, respectively, when U.S. regulators launched their crypto crackdown, yet both managed to end the month with almost no losses.
Joel Kruger, market strategist at LMAX Group, highlighted Bitcoin’s recent inability to establish itself above the August 2022 high of $25,200, in addition to the Silvergate scare. If Bitcoin fails to reach $22,000, the next stop is likely to be around $21,400. Nonetheless, Hasegawa suggested that there may be a low and high convergence in February.
