Bitcoin stable near post-Silvergate fall lows
Company hurt by investors rushing to withdraw $8b of deposits
LONDON: On Thursday, Bitcoin stabilized around its mid-February lows, following an announcement from US-based crypto-focused bank Silvergate that it would undergo voluntary liquidation. The collapse of the FTX exchange has triggered a series of high-profile crypto collapses, of which this is the latest.
Silvergate Capital Corp:
Silvergate Capital Corp said on Wednesday it planned to close and voluntarily liquidate, after warning last week that it was evaluating its ability to operate as a going concern.
Investors rushing to withdraw approximately $8 billion of deposits after the sudden bankruptcy of FTX last year had hit the California-based company, which was a vital banking partner for crypto businesses.
Bitcoin was last down 0.4% at $21,624, having fallen 2.2% on Wednesday to a 3-1/2 week low of $21,590.
Investors rushing to withdraw around $8 billion of deposits after the sudden bankruptcy of FTX last year had hit the California-based company, which was a vital banking partner for crypto businesses.
Multiple partners of the bank, including major crypto exchange Coinbase Global Inc, severed ties with Silvergate last week. Others, including Binance, said they did not have any asset losses at Silvergate.
James Butterfill said ,“Investors in bitcoin have had some time to digest this news, they are also much more focused on macro-economic developments,” Head of Research at digital asset manager Coin Shares.
“With growing doubt in the bond market over the risk of the damage further interest rate rises will do to the US economy, it is supporting bitcoin prices to some extent, despite the bad news on Silvergate.”
Bitcoin has gained more than 30% so far this year, clawing back some of its losses of almost 65% in 2022 that were triggered by a string of high-profile corporate failures in the crypto world.
Published in The Logical baat, March 10th, 2023.