Bitcoin falls to 2 week low on Silvergate collapse

Bitcoin falls to 2-week low on Silvergate collapse

Bitcoin has bottomed out over the past two weeks, which has led to a large-scale negative trend in the cryptocurrency markets. The reason for investors’ pessimism was the plight of the bank Silvergate, which served as the main payment system for the entire industry.

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The daily decline of the largest cryptocurrency reached 6%, but then managed to recover somewhat – as a result, the decline was 3.76% at a price of $24,404. Other digital assets, including Ether, Avalanche and Dogecoin, also showed negative momentum.

The crypto industry is grappling with the aftermath of troubles at friend bank Silvergate, which is now trying to carry on as usual. The bank offered a real-time payment service system. Crypto exchanges, stablecoin issuers and marketplaces have now stopped making payments through Silvergate. The situation with the bank is the result of a chain reaction that started with the collapse of the cryptocurrency exchange FTX in November last year. After the site went bankrupt, many of the bank’s customers withdrew their deposits from it.

Other negative factors include the crackdown on the digital asset sector by US regulators and concerns that US interest rates will remain high long enough to stave off inflation. Additionally, Bitcoin has fallen below its 50-day moving average, indicating the risk of another decline. Since the beginning of the year, the largest cryptocurrency is up 35% in price, significantly outperforming the average global stock return of 4%.


About the author

Robbie Elmers

Robbie Elmers is a staff writer for Tech News Space, covering software, applications and services.

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