Silvergate controversy caused a 5% drop in bitcoin prices in an hour
On, March 3 there has been a distinct drop in the bitcoin price that erased $22 billion dollar from the market capital. The drop in the price was more than 5% i.e. from $23500 to $22240 within a span of an hour. In the middle of this, there is the wave of unpredictability about the cryptocurrency-friendly bank Silvergate.
Many crypto exchanges left partnerships with Silvergate Bank after finding out about its involvement in multi-billion frauds with other partners. The value of the stock prices of the bank is dropping with every passing day. However not only that it has also left a negative impact on other cryptocurrencies as well. Moreover, this incident also indicated that the number of banks dealing in cryptocurrencies is also increasing substantially. Still, the Silvergate or crypto bank unpredictability affected the bitcoin prices.
Marcus Thielen who is the head of research at the digital asset platform maxiport, believes the bitcoin price drop is due to the Silvergate Bank controversy of delaying the filing of the annual 10k financial report. Additionally, the efforts of the US to limit the link between banks and crypto firms led to this.
He further added that the drop in prices is due to the involvement of Silvegate in several issues. which resulted in increased uncertainty regarding the deposit or withdrawal of the fiat. however, there are rather more important matters to look at like limiting the crypto industry and banks insured by FDIC. Unlike the anti-crypto states which are becoming more crypto-friendly.
There has been a prediction on Twitter about the price drop from the $23,000 resistance by some technical analysts.
On Feb 15, BTC was priced at $22,250. The start to 2023 has been pretty solid but despite that, a distinct drop came, with BTC still up 34.8% for the year.
Within the first hour, ether erased $9 billion from its market capital by falling to 4.74% from $1644 to $1566.