The Demise of Silvergate Bank has caused the cryptocurrency market to drop below $1 trillion. This is the first time the market has fallen below this threshold in 2019. The market is expected to rebound in the coming weeks.
The price of bitcoin is plummeting after another crypto-friendly institution announced plans to liquidate.
Silvergate Bank has announced that it will be winding down its operations in accordance with all applicable regulatory processes. The bank assures customers that all funds will be repaid in full.
Silvergate believes that an orderly wind down of bank operations and a voluntary liquidation of the bank is the best path forward in light of recent industry and regulatory developments.
The bank’s wind down and liquidation plan includes a commitment to repay all deposits in full.
Bitcoin tumbled in value on Monday after JP Morgan Chase announced that it would be launching its own cryptocurrency. The digital currency had begun to dip in price last week amid concerns about the bank’s potential foray into the cryptocurrency market.
Cryptocurrency enthusiasts are worried that the market downturn is a sign of things to come.
Since the start of the month, the world’s biggest cryptocurrency has been on a downward spiral, having fallen below $21,700 on Thursday morning. This has many cryptocurrency enthusiasts worried that the market downturn is a sign of things to come.
Cryptocurrencies across the board plummeted today, with several major players seeing double-digit losses. Ethereum (ETH), Cardano (ADA) and Dogecoin (DOGE) were all hit hard, pushing the overall crypto market cap below $1 trillion for the first time since mid February.
The collapse of a prominent bank within the cryptocurrency industry has once again raised concerns about the health of the crypto sector in the US. Less than a year after the collapse of leading exchange FTX, this latest development is another sign that the industry is in trouble.