Crypto Market Tumbles After Silvergate News, Bitcoin and Ethereum Hit 16-Day Low

Cryptocurrencies took a tumble on Thursday and Friday following unsettling news involving Silvergate Capital, the bank backing many of crypto’s largest players, which is facing major client losses and bankruptcy.[0] Bitcoin fell 4% to $22,385, while Ethereum also dropped 3%, hitting a 16-day low.[1]

The Federal Reserve is expected to announce an increase in interest rates at its next meeting, which starts on March 22, 2023.[2] Analysts at the CME Group predict a 72.3% chance that the Fed will raise rates by another 25 basis points this month, and a 27.7% chance for a raise of 50 basis points.[3]

Coinbase (COIN 1.27%) and other major clients announced they would stop using Silvergate, and the bank’s stock plummeted by close to 58%.[4] Cryptocurrencies held up relatively well considering the news, but investors are now growing more worried.[5]

To make matters worse, the Department of Justice is reportedly looking into Silvergate for possibly violating anti-money laundering or Bank Secrecy Act (BSA) laws. Silvergate is important for the crypto ecosystem because it provided critical infrastructure with its real-time payments network for fiat dollars that could better facilitate crypto transactions.[3]

Bitcoin has recovered this year after tumbling more than 60% in 2022 to below $17,000, and is now up more than 30%.[6] However, it could be in for a month of sideways trading now that the broader rally in risk assets has faded.[6] For certain chart analysts, the token’s drop below its 50-day moving average increases the risk of further drops.[7] Ethereum has nudged levels close to $1,740 before declining in the current sell-off, with the $1,500 level being a crucial support in the short term.[8]

Bitcoin moved just 0.03% last month in United State dollar terms, making February 2023 likely its least volatile in history.[9] Data from Coinglass confirms that BTC/USD went practically nowhere for four weeks straight.[10] CryptoQuant analyst abramchart said that whale activity is rising on Bitcoin spot exchanges, with the Bitcoin Exchange Whale Ratio rising to 0.78 as of March 1st.[11]

The total crypto market capitalization dropped 1.02% in the past 24 hours to US$1.07 trillion, while the total trading volume over the last 24 hours went down 12.30% to US$42.65 billion.[12]

0. “Bitcoin Tumbles as Silvergate Fears Wipe Out Bullish Crypto Traders” Barron’s, 3 Mar. 2023,

1. “Latest Crypto Collapse: Bitcoin And Ethereum’s Losses Top $24 Billion As Silvergate Unravels” Forbes, 3 Mar. 2023,

2. “Higher Than Expected PCE Numbers Push Bitcoin Down” BeInCrypto, 24 Feb. 2023,

3. “Bitcoin slides below US$23,000 in broad crypto price slump” Forkast News, 3 Mar. 2023,

4. “Why Shiba Inu, Solana, and Cardano Are Falling Today” The Motley Fool, 2 Mar. 2023,

5. “Why Bitcoin, Ethereum, and Shiba Inu Are Falling Today” The Motley Fool, 3 Mar. 2023,

6. “Bitcoin, ether slide on Friday as investors weigh potential fallout from Silvergate woes” CNBC, 3 Mar. 2023,

7. “Bitcoin sinks to two-week low as Silvergate fallout hurts crypto” The Australian Financial Review, 3 Mar. 2023,

8. “Bitcoin, Ethereum: Crucial Support, Resistance Levels – Silvergate Capital (NYSE:SI)” Benzinga, 1 Mar. 2023,

9. “Bitcoin’s least volatile month ever? BTC price ends February up 0.03%” Cointelegraph, 1 Mar. 2023,

10. “Bitcoin Saw Low Volatility During the Month of February” ETF Trends, 3 Mar. 2023,

11. “Two Considerations as Bitcoin Withdraws Toward $23K” CryptoPotato, 2 Mar. 2023,

12. “Bitcoin, Ether fall along with most top 10 cryptos amid potential for larger interest rate hikes” Yahoo Life, 2 Mar. 2023,