As reported, the parent company of Silvergate Bank, Silvergate Capital Corp. (SI) said today that it would wind down operations and voluntarily liquidate in an orderly manner and in accordance with applicable regulatory processes. Silvergate Bank has been a key partner of many major US crypto exchanges since 2013
After the news, the cryptocurrency market suffered another correction, bringing the prices of top coins to a 1-month low.
Bitcoin (BTC) at some point collapsed to $21,580, the lowest value threshold since February 13, after the news that Silvergate bank could not handle the current difficulties and accept to liquidate assets and wind down operations.
Previously, BTC on March 3 had a strong dump once also because of Silvergate.
The second biggest coin, Ethereum (ETH) also collapsed to $1,523, losing more than $200 in value since peaking at $1,742 on Feb.15.
Most of the top 20 altcoins at the moment have a drop of 2-5%, except for Solana (SOL) and Polygon (MATIC).
MATIC price at the time of this writing is down 8.2% to $1.06, while SOL is down 8.7% to $18. Calculated in the last 7 days, both SOL and MATIC have “evaporated” by nearly 15% and 17.5% of their value, respectively. SOL and MATIC are the coins with the strongest recovery in the first 2 months of 2023. However, with the latest fluctuations, SOL and MATIC prices have been pushed back to the price range of mid-January.
According to statistics from Coinglass, the number of orders liquidated in the past 4 hours is not as high as the dumps on the cryptocurrency market when it reached just over $48 million, in which the percentage of long orders burned was still overwhelming at 96.4%.