• Silvergate Bank, a crypto-friendly bank, recently announced that it would shut down
• The news caused Bitcoin and other major cryptocurrencies to decline
• Bitcoin dropped below $21K for the first time in seven weeks
Silvergate Bank Shutdown Shakes Crypto Markets
Bitcoin and other major cryptocurrencies declined as the crypto-focused lender’s crisis continued to unfold; ether sinks 7%.
Bitcoin Dips Below $21K
Bitcoin dropped about 6% in the past 24 hours to sink below $21,000 for the first time in seven weeks as investors continued to fret about the fallout from crypto-friendly bank Silvergate Bank’s implosion.
Silvergate Bank Closure Causes Widespread Panic
On Wednesday Silvergate Capital (SI), the parent company of the lending focused bank, said that Silvergate Bank would „voluntarily liquidate“ its assets and shutter operations. This shook up investors and caused Bitcoin and other major cryptocurrencies to plunge.
Price Impact of Silvergate Bank Closure
The largest cryptocurrency by market capitalization traded as low as $20,050 on Thursday, its lowest level since Jan. 14, before regaining some ground to hover just over $20,370, off more than 7.6% over the past 24 hours.
Expert Commentary On Price Drop
Tactive Wealth Advisor Eddy Gifford shares his reaction saying: “This remains a tough environment for crypto given the fallout from Silvergate ― it’s really shaking investor confidence.”