Silvergate Fears Trigger Bitcoin, Ethereum, and Dogecoin Drop
Major cryptocurrencies, including Bitcoin, Ethereum, and Dogecoin, traded lower on Thursday evening as the crypto market experienced a sell-off due to troubles at Silvergate Capital. The bank, which is known for being crypto-friendly, stated in a filing that the FTX exchange collapse and subsequent regulatory inquiries have raised significant questions about its ability to continue as a going concern. This triggered a sell-off and concerns about bankruptcy, causing numerous crypto companies to withdraw business from the bank. The news also led to share price drops and sell-side downgrades. MicroStrategy has confirmed that it has no assets in custody with Silvergate Capital and that its only connection is a commitment to repay a loan in 2025. In the past 24 hours, 81,843 traders were liquidated, causing $240.78 million worth of liquidations, according to CoinGlass Data. The global crypto market capitalization was $1.05 trillion, down 2.02% in the last day. Crypto analysts have warned that Bitcoin’s trading range continues to hold, and any breaches of the $21,500 to $25,000 zone might be temporary unless a major crypto event occurs. The long-term support level has been reached, so bulls have to make a stand, or a downside target will be met sooner rather than later, according to CrediBULL Crypto.