Silvergate’s Crumble Causes Bitcoin, Ethereum, and Dogecoin to Decline.
On Sunday, major cryptocurrencies including Bitcoin, Ethereum, and Dogecoin traded in a downward trend as investors continued to consider the implication of financial institution Silvergate Capital’s SI failure. Bitcoin, which had a volatile trading session, traded below $23,000, Ethereum was below $1,600, and Dogecoin was down 1.65% to trade at $0.074. Ripple CEO Brad Garlinghouse warned that the Securities and Exchange Commission’s enforcement approach to regulation is putting the US at risk of lagging in the future of blockchain and crypto innovation and that it was an unhealthy way to regulate the industry. The CEO suggested that the approach could also make the U.S. less attractive to investors and innovators in the industry. Binance, in its proactive approach to potentially avoid legal action from US authorities, reportedly developed a plan including launching an American entity. Analyst Edward Moya warns that several key crypto companies are abandoning using Silvergate, which is raising contagion concerns; while Michaël van de Poppe warns that if Bitcoin fails to hold $21,300, altcoins could suffer significant losses. However, he maintains an overall positive outlook, suggesting that $40,000 could still appear “in a few months”. Analyst Justin Bennett believes Bitcoin is experiencing a buying spree at the January trend line but warns that the major obstacle now is the monthly open price of $23,130. He notes that if Bitcoin fails to reclaim that level soon, it is likely to trend lower towards the $20,800 liquidity pool.
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