Bitcoin (BTC) has broken below $21,000 for the first time in seven weeks. Market anxiety spread after Silvergate Capital, the parent company of Silvergate Bank, known as a crypto-friendly bank, announced on March 8 that it would “voluntarily liquidate” its assets and cease operations. .
Bitcoin fell to $20,500 on the 9th, its lowest since January 14, before recovering slightly to hover around $20,370, down more than 7.6% in 24 hours.
“Given the impact from Silvergate Capital, the environment remains challenging for crypto assets and Bitcoin may come under further selling pressure to test the $20,000 mark,” said Senior Market Analyst at Oanda. Edward Moya wrote in a memo dated 9th.
Over the last 24 hours, Bitcoin saw liquidations of more than $98 million, with over 94% of long positions, according to Coinglass data.
Moya writes that Silvergate Bank’s demise highlights ongoing problems surrounding banking services for crypto assets. “The crypto industry is now looking for new service companies to do payments and other deposit-related services,” he continued.
Julius de Kempenaer, Senior Technical Analyst at StockCharts.com, said that if service providers to the crypto market like Silvergate were to run into more trouble, “crypto access would be more difficult. It will be difficult …[…]will be unattractive to new investors.”
Stefan Rust, CEO of economic data aggregator Truflation, said the Silvergate crisis would slow market entry for institutional investors.
Many other major crypto assets have also fallen. Ethereum (ETH) is down more than 7% in 24 hours near $1,440. In particular, on the afternoon of the 9th, the New York Attorney General filed a lawsuit against the cryptocurrency exchange KuCoin, and after it was revealed that the complaint claimed that Ethereum was a security, the price fell sharply.
Polygon (MATIC) is down about 8% in 24 hours and about 16% over the past seven days, breaking below $1. Solana (SOL) is down about 9% to near $17. Solana, which has generally hovered in the $20s range this year, has fallen about 20% over the past seven days.
The CoinDesk Market Index (CMI), which measures overall crypto market performance, is down 4.7%, down 11.4% over the past week. Stock markets also struggled, with the S&P 500 down 1.9%.
｜Translation: coindesk JAPAN
｜Editing: Takayuki Masuda
| Image: CoinDesk
｜Original: Bitcoin Dips Below $21K to Reach Lowest Level In 7 Weeks as Silvergate Bank Shutdown Shakes Investors
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