Crypto: Bitcoin tumbles as Silvergate angst continues to weigh on crypto

by | Mar 3, 2023 | Stock Market

Major cryptocurrencies tumbled Friday as concerns over Silvergate Capital Corp.’s ability to continue its operation keep brewing.  Bitcoin
fell 4.6% over the past 24 hours to around $22,320, according to CoinDesk data. The crypto went down to as low as $22,020 late Thursday, the lowest level since Feb. 15. Ether
traded 4.5% lower over the past 24 hours to about $1,559. 

stock lost more than half of its value Thursday, while it recouped some losses Friday with a 6.7% gain, according to Dow Jones market data.  Read: Here’s the real challenge facing Silvergate and other ‘crypto banks,’ says this short seller Several crypto companies, such as exchange Coinbase
financial services firm Galaxy Digital and stablecoin issuer Circle, said Thursday they would cease payment transactions with Silvergate, after the lender said Wednesday in a regulatory filing that it would delay the submission of its annual report.  Bitcoin has been largely trading in tandem with the U.S. equity market this week, while the trend snapped Thursday evening following the Silvergate woes, according to a Friday note by analysts at Macro Hive.  From the technical perspective, bitcoin’s support level stands at around $21,400 and a dip below that would “negate the positive scenario,” according to Julius de Kempenaer, senior technical analyst at  A series of events have left Silvergate at risk of “being less than well-capitalized,” and the company is evaluating those events’ impact on its ability to continue as a going concern, according to the company’s Wednesday filing. “The Company is currently analyzing certain regulatory and other inquiries and investigations that are pending with respect to the Company,” it added. The bank reported a $1 billion loss for the fourth quarter of 2022.

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