The landscape of cryptocurrency. Illustration by Mitchell Preffer for Decrypt.
The third consecutive week of market-wide depreciation in 2023 ended on a sour note, with all leading cryptocurrencies suffering double-digit losses. The troubles began when Silvergate Bank announced it was “wind down”, and speculation about Silicon Valley Bank’s impending failure only exacerbated the situation.
CoinGecko data show that Bitcoin (BTC) is down 10.5% and is currently trading at $20,055. Ethereum (ETH) is also down 9.5% over the last seven days and is hovering around $1,425.
Other leading cryptocurrencies also posted steep losses, with Filecoin (FIL), OKB, Solana (SOL), and Dogecoin (DOGE) all losing 20% or more. Polygon (MATIC), Polkadot (DOT), Shiba Inu (SHIB), Avalanche (AVAX), Uniswap (UNI), and Chainlink (LINK) all declined by around 15%.
The U.S. regulators were also in the spotlight this week. Federal Reserve Chairman Jerome Powell reminded regulated financial institutions to take “great care” when engaging with the crypto space due to its lack of transparency, while Senator Ed Markey (D-Massachusetts) chaired a hearing on the environmental impact of crypto mining. Congressman Stephen Lynch (D-MA) asked Powell whether a tokenized version of the U.S. dollar would wipe out other cryptocurrencies, and Rostin Behnam, chairman of the Commodities and Futures Trading Commission (CFTC), declared that Ethereum is a commodity. Finally, Republican House Majority Whip Tom Emmer (R-MN) warned against a central bank digital currency (CBDC).
Navigating the Cryptocurrency Ecosystem
The crypto markets have been in flux this week, with the combined market capitalization of all cryptocurrencies plunging below a trillion dollars. The market woes were brought on by the announced “wind down” of Silvergate Bank and the speculation surrounding Silicon Valley Bank.
Bitcoin (BTC) and Ethereum (ETH) were the worst hit, with losses of 10.5% and 9.5%, respectively. Other leading cryptocurrencies suffered double-digit losses, with Filecoin (FIL), OKB, Solana (SOL), and Dogecoin (DOGE) all taking a hit of 20% or more. Polygon (MATIC), Polkadot (DOT), Shiba Inu (SHIB), Avalanche (AVAX), Uniswap (UNI), and Chainlink (LINK) all declined by around 15%.
The U.S. regulators were also in the limelight this week. Federal Reserve Chairman Jerome Powell urged regulated financial institutions to take “great care” when engaging with the crypto space, Senator Ed Markey (D-Massachusetts) held a hearing on the environmental impact of crypto mining, Congressman Stephen Lynch (D-MA) asked Powell whether a tokenized version of the U.S. dollar would wipe out other cryptocurrencies, and Rostin Behnam, chairman of the Commodities and Futures Trading Commission (CFTC), declared that Ethereum is a commodity. Finally, Republican House Majority Whip Tom Emmer (R-MN) warned against a central bank digital currency (CBDC).
