Bitcoin News: BTC Down Silvergate Capital Is To Blame
Bitcoin News: The first cryptocurrency on the market is once again red, although without spectacular cuts, but it is moving away from the long-awaited $24,000 due to the new fears now related to the Silvergate bank, converted into a cryptobank and impacting the entire cryptographic universe, which indicates that not everything has ended with the bankruptcy of FTX, of which there are also news.
Bitcoin represents more than 40% of the entire global cryptocurrency market capitalization and has felt the impetus in its price, in recent days, of the debacle to which Silvergate Capital is subjected . For those who do not know it, we are talking about a New York financial institution that went into the world of digital currencies. Specifically, it is dedicated to providing banking services to cryptographic companies and last Thursday, it collapsed in the market, with cuts that exceeded 58%, to close with falls of 57.7% after delaying the presentation of its results.
But they argued that this delay is due to the fact that we were evaluating the ability to continue operating, given the impact suffered by the problems in the cryptographic sector. An announcement with immediate translation to cryptocurrencies. And it is that the bank has been very impacted by the bankruptcy that occurred in FTX that also continues to give people talk.
In recent days, a report from The Wall Street Journal indicated that, in the case of the bankrupt cryptocurrency exchange, $8.9 billion in customer funds are missing. And it’s the now-failed FTX that has identified about $2.7 billion in client assets, compared with $11.6 billion that was listed as outstanding balances in company client accounts.
All this effect, due to the crisis of confidence unleashed in the sector, has forced Silvergate Capital to get rid of shares to satisfy the overwhelming withdrawals of funds from cryptocurrency users, so that, in its provisional accounts, during the past year it recognized net losses close to 1,000 million dollars, compared to registered benefits of 75.5 million in the previous year. All this led him to interrupt his crypto payments.
At that time, a general “security cordon” was created in the sector. On the one hand, from Coinbase and other important exchanges such as Galaxy Digital, Circle, Paxos, Crypto.com or Gemini indicated that they would not accept payments or initiate them with respect to Silversgate, putting an end to commercial transactions with the entity. On the other, the major Wall Street firms were running on value. This is the case of Goldman Sachs, which suspended its rating indicating that it did not have enough information about the value, while JPMorgan lowered its rating, understanding that regulatory challenges and the crisis of confidence among digital asset customers have led to this effect on your quote.
Thus, all the cryptocurrencies in general and Bitcoin in particular showed the falls, which finally ended in the week with cuts of 3.20% in the last week, which changed the upward trend, since, in the last month, the cuts already reach 4.26% for the digital asset. However, the gains of 31.5% and the annual advances, which exceed 35%, were maintained in the quarter. All this while returning the questions and doubts of investors about the reliability and risk appetite in cryptocurrencies, while Bitcoin registered its lowest level in the last two weeks.
Now it will be necessary to verify if the effect is lasting in the price of Bitcoin, or if the cryptographic market becomes resilient with this bad news. At the moment, from the Premium Force Indicators that Estrategias de Inversión prepares, we see that it goes from weak to strong, a level at which it remains in the medium term, while, in the long term, it remains very strong, with resistance breaking operations and buying at supports, and risk of accumulation of excesses and bearish figures.
As for the cryptographic fear and greed index, it falls slightly to 47 from 51 last week and 50 in previous sessions and moves away from the greed levels of 60 reached last month, although the cut is moderate, as in its price. Remains in neutral zone.
Meanwhile, in the field of capitalization, it falls positions, with its current market value of just over 432,160 million . It ranks 18th in the global ranking above JPMorgan Chase and below French luxury firm LVMH. In addition, it represents 40.3% of the total world capitalization of cryptocurrencies, which amounts to 1.08 trillion dollars.
For more latest Bitcoin News visit cryptocandle regularly. Crypto Bull Run Prediction 2023