{"id":1670,"date":"2023-03-03T17:02:34","date_gmt":"2023-03-03T22:02:34","guid":{"rendered":"https:\/\/embarrdowns.com\/crypto-market-tumbles-after-silvergate-news-bitcoin-and-ethereum-hit-16-day-low\/"},"modified":"2023-03-03T17:02:35","modified_gmt":"2023-03-03T22:02:35","slug":"crypto-market-tumbles-after-silvergate-news-bitcoin-and-ethereum-hit-16-day-low","status":"publish","type":"post","link":"https:\/\/embarrdowns.com\/crypto-market-tumbles-after-silvergate-news-bitcoin-and-ethereum-hit-16-day-low\/","title":{"rendered":"Crypto Market Tumbles After Silvergate News, Bitcoin and Ethereum Hit 16-Day Low"},"content":{"rendered":"

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]<\/a><\/sup> Bitcoin fell 4% to $22,385, while Ethereum also dropped 3%, hitting a 16-day low.[1]<\/a><\/sup><\/p>\n

The Federal Reserve is expected to announce an increase in interest rates at its next meeting, which starts on March 22, 2023.[2]<\/a><\/sup> 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]<\/a><\/sup><\/p>\n

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]<\/a><\/sup> Cryptocurrencies held up relatively well considering the news, but investors are now growing more worried.[5]<\/a><\/sup><\/p>\n

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]<\/a><\/sup><\/p>\n

Bitcoin has recovered this year after tumbling more than 60% in 2022 to below $17,000, and is now up more than 30%.[6]<\/a><\/sup> However, it could be in for a month of sideways trading now that the broader rally in risk assets has faded.[6]<\/a><\/sup> For certain chart analysts, the token’s drop below its 50-day moving average increases the risk of further drops.[7]<\/a><\/sup> 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]<\/a><\/sup><\/p>\n

Bitcoin moved just 0.03% last month in United State dollar terms, making February 2023 likely its least volatile in history.[9]<\/a><\/sup> Data from Coinglass confirms that BTC\/USD went practically nowhere for four weeks straight.[10]<\/a><\/sup> 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]<\/a><\/sup><\/p>\n

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]<\/a><\/sup><\/p>\n

0. <\/span>“Bitcoin Tumbles as Silvergate Fears Wipe Out Bullish Crypto Traders” Barron’s, 3 Mar. 2023, https:\/\/www.barrons.com\/articles\/bitcoin-ethereum-price-crypto-markets-today-e005b72c<\/a><\/a><\/p>\n

1. <\/span>“Latest Crypto Collapse: Bitcoin And Ethereum\u2019s Losses Top $24 Billion As Silvergate Unravels” Forbes, 3 Mar. 2023, https:\/\/www.forbes.com\/sites\/dereksaul\/2023\/03\/03\/latest-crypto-collapse-bitcoin-and-ethereums-losses-top-24-billion-as-silvergate-unravels\/<\/a><\/a><\/p>\n

2. <\/span>“Higher Than Expected PCE Numbers Push Bitcoin Down” BeInCrypto, 24 Feb. 2023, https:\/\/beincrypto.com\/pce-numbers-push-bitcoin-down\/<\/a><\/a><\/p>\n

3. <\/span>“Bitcoin slides below US$23,000 in broad crypto price slump” Forkast News, 3 Mar. 2023, https:\/\/forkast.news\/headlines\/bitcoin-below-23k-ether-slides-price-slump\/<\/a><\/a><\/p>\n

4. <\/span>“Why Shiba Inu, Solana, and Cardano Are Falling Today” The Motley Fool, 2 Mar. 2023, https:\/\/www.fool.com\/investing\/2023\/03\/02\/why-shiba-inu-solana-and-cardano-are-falling-today\/<\/a><\/a><\/p>\n

5. <\/span>“Why Bitcoin, Ethereum, and Shiba Inu Are Falling Today” The Motley Fool, 3 Mar. 2023, https:\/\/www.fool.com\/investing\/2023\/03\/03\/why-bitcoin-ethereum-and-shiba-inu-are-falling-tod\/<\/a><\/a><\/p>\n

6. <\/span>“Bitcoin, ether slide on Friday as investors weigh potential fallout from Silvergate woes” CNBC, 3 Mar. 2023, https:\/\/www.cnbc.com\/2023\/03\/03\/bitcoin-ether-slide-on-friday-as-investors-weigh-potential-fallout-from-silvergate-woes.html<\/a><\/a><\/p>\n

7. <\/span>“Bitcoin sinks to two-week low as Silvergate fallout hurts crypto” The Australian Financial Review, 3 Mar. 2023, https:\/\/www.afr.com\/markets\/debt-markets\/bitcoin-sinks-to-two-week-low-as-silvergate-fallout-hurts-crypto-20230303-p5cp9n<\/a><\/a><\/p>\n

8. <\/span>“Bitcoin, Ethereum: Crucial Support, Resistance Levels – Silvergate Capital (NYSE:SI)” Benzinga, 1 Mar. 2023, https:\/\/www.benzinga.com\/markets\/cryptocurrency\/23\/03\/31189450\/bitcoin-ethereum-heres-a-look-at-crucial-support-resistance-levels-as-selloff-intensifies<\/a><\/a><\/p>\n

9. <\/span>“Bitcoin\u2019s least volatile month ever? BTC price ends February up 0.03%” Cointelegraph, 1 Mar. 2023, https:\/\/cointelegraph.com\/news\/bitcoin-s-least-volatile-month-ever-btc-price-ends-february-up-0-03<\/a><\/a><\/p>\n

10. <\/span>“Bitcoin Saw Low Volatility During the Month of February” ETF Trends, 3 Mar. 2023, https:\/\/www.etftrends.com\/crypto-channel\/bitcoin-saw-low-volatility-during-the-month-of-february<\/a><\/a><\/p>\n

11. <\/span>“Two Considerations as Bitcoin Withdraws Toward $23K” CryptoPotato, 2 Mar. 2023, https:\/\/cryptopotato.com\/two-considerations-as-bitcoin-withdraws-toward-23k<\/a><\/a><\/p>\n

12. <\/span>“Bitcoin, Ether fall along with most top 10 cryptos amid potential for larger interest rate hikes” Yahoo Life, 2 Mar. 2023, https:\/\/www.yahoo.com\/lifestyle\/bitcoin-ether-fall-along-most-093353901.html<\/a><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

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]<\/a><\/sup> Bitcoin fell 4% to $22,385, while Ethereum also dropped 3%, hitting a 16-day low.[1]<\/a><\/sup><\/p>\n

The Federal Reserve is expected to announce an increase in interest rates at its next meeting, which starts on March 22, 2023.[2]<\/a><\/sup> 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]<\/a><\/sup><\/p>\n

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]<\/a><\/sup> Cryptocurrencies held up relatively well considering the news, but investors are now growing more worried.[5]<\/a><\/sup><\/p>\n

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]<\/a><\/sup><\/p>\n

Bitcoin has recovered this year after tumbling more than 60% in 2022 to below $17,000, and is now up more than 30%.[6]<\/a><\/sup> However, it could be in for a month of sideways trading now that the broader rally in risk assets has faded.[6]<\/a><\/sup> For certain chart analysts, the token’s drop below its 50-day moving average increases the risk of further drops.[7]<\/a><\/sup> 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]<\/a><\/sup><\/p>\n

Bitcoin moved just 0.03% last month in United State dollar terms, making February 2023 likely its least volatile in history.[9]<\/a><\/sup> Data from Coinglass confirms that BTC\/USD went practically nowhere for four weeks straight.[10]<\/a><\/sup> 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]<\/a><\/sup><\/p>\n

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]<\/a><\/sup><\/p>\n

0. <\/span>“Bitcoin Tumbles as Silvergate Fears Wipe Out Bullish Crypto Traders” Barron’s, 3 Mar. 2023, https:\/\/www.barrons.com\/articles\/bitcoin-ethereum-price-crypto-markets-today-e005b72c<\/a><\/a><\/p>\n

1. <\/span>“Latest Crypto Collapse: Bitcoin And Ethereum\u2019s Losses Top $24 Billion As Silvergate Unravels” Forbes, 3 Mar. 2023, https:\/\/www.forbes.com\/sites\/dereksaul\/2023\/03\/03\/latest-crypto-collapse-bitcoin-and-ethereums-losses-top-24-billion-as-silvergate-unravels\/<\/a><\/a><\/p>\n

2. <\/span>“Higher Than Expected PCE Numbers Push Bitcoin Down” BeInCrypto, 24 Feb. 2023, https:\/\/beincrypto.com\/pce-numbers-push-bitcoin-down\/<\/a><\/a><\/p>\n

3. <\/span>“Bitcoin slides below US$23,000 in broad crypto price slump” Forkast News, 3 Mar. 2023, https:\/\/forkast.news\/headlines\/bitcoin-below-23k-ether-slides-price-slump\/<\/a><\/a><\/p>\n

4. <\/span>“Why Shiba Inu, Solana, and Cardano Are Falling Today” The Motley Fool, 2 Mar. 2023, https:\/\/www.fool.com\/investing\/2023\/03\/02\/why-shiba-inu-solana-and-cardano-are-falling-today\/<\/a><\/a><\/p>\n

5. <\/span>“Why Bitcoin, Ethereum, and Shiba Inu Are Falling Today” The Motley Fool, 3 Mar. 2023, https:\/\/www.fool.com\/investing\/2023\/03\/03\/why-bitcoin-ethereum-and-shiba-inu-are-falling-tod\/<\/a><\/a><\/p>\n

6. <\/span>“Bitcoin, ether slide on Friday as investors weigh potential fallout from Silvergate woes” CNBC, 3 Mar. 2023, https:\/\/www.cnbc.com\/2023\/03\/03\/bitcoin-ether-slide-on-friday-as-investors-weigh-potential-fallout-from-silvergate-woes.html<\/a><\/a><\/p>\n

7. <\/span>“Bitcoin sinks to two-week low as Silvergate fallout hurts crypto” The Australian Financial Review, 3 Mar. 2023, https:\/\/www.afr.com\/markets\/debt-markets\/bitcoin-sinks-to-two-week-low-as-silvergate-fallout-hurts-crypto-20230303-p5cp9n<\/a><\/a><\/p>\n

8. <\/span>“Bitcoin, Ethereum: Crucial Support, Resistance Levels – Silvergate Capital (NYSE:SI)” Benzinga, 1 Mar. 2023, https:\/\/www.benzinga.com\/markets\/cryptocurrency\/23\/03\/31189450\/bitcoin-ethereum-heres-a-look-at-crucial-support-resistance-levels-as-selloff-intensifies<\/a><\/a><\/p>\n

9. <\/span>“Bitcoin\u2019s least volatile month ever? BTC price ends February up 0.03%” Cointelegraph, 1 Mar. 2023, https:\/\/cointelegraph.com\/news\/bitcoin-s-least-volatile-month-ever-btc-price-ends-february-up-0-03<\/a><\/a><\/p>\n

10. <\/span>“Bitcoin Saw Low Volatility During the Month of February” ETF Trends, 3 Mar. 2023, https:\/\/www.etftrends.com\/crypto-channel\/bitcoin-saw-low-volatility-during-the-month-of-february<\/a><\/a><\/p>\n

11. <\/span>“Two Considerations as Bitcoin Withdraws Toward $23K” CryptoPotato, 2 Mar. 2023, https:\/\/cryptopotato.com\/two-considerations-as-bitcoin-withdraws-toward-23k<\/a><\/a><\/p>\n

12. <\/span>“Bitcoin, Ether fall along with most top 10 cryptos amid potential for larger interest rate hikes” Yahoo Life, 2 Mar. 2023, https:\/\/www.yahoo.com\/lifestyle\/bitcoin-ether-fall-along-most-093353901.html<\/a><\/a><\/p>\n","protected":false},"author":3,"featured_media":1669,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[47],"tags":[],"_links":{"self":[{"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/posts\/1670"}],"collection":[{"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/comments?post=1670"}],"version-history":[{"count":0,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/posts\/1670\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/media\/1669"}],"wp:attachment":[{"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/media?parent=1670"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/categories?post=1670"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/tags?post=1670"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}