Bitcoin and Crypto Market Slump Further Due to Silvergate

Bitcoin and several leading altcoins have continued their decline due to recent developments concerning Silvergate Bank.

Bitcoin and Crypto Market Slump Further Due to Silvergate

In the early hours of March 9, the cryptocurrency market experienced another significant adjustment, pushing the prices of major coins to their lowest levels in a month.

Bitcoin (BTC) briefly plunged to $21,580, marking its lowest point since February 13. This drop followed news that Silvergate Bank is struggling with its current difficulties and has opted to voluntarily liquidate assets to pay back its customers.

Details: Silvergate Bank "Voluntarily Liquidates Assets"

4h Chart of BTC/USDT on Binance as of 08:00 AM on March 9, 2023

Previously, on March 3, BTC also faced a sharp drop when Silvergate first signaled potential crisis, as reported by Coin68.

Moreover, the crypto market is also wary of rumors that Mt. Gox might begin Bitcoin repayments starting March 10 (though this has yet to be confirmed), along with the recent moves of Voyager and U.S. authorities to transfer coins to exchanges.

Ethereum (ETH) also fell to $1,523, losing over $200 in value since reaching a peak of $1,742 on February 15.

4h Chart of ETH/USDT on Binance as of 08:00 AM on March 9, 2023

Most of the top 20 altcoins are experiencing declines of 2-5%, with the exceptions of Solana (SOL) and Polygon (MATIC).

As of the latest update, MATIC has dropped by 8.2% to $1.06, while SOL has decreased by 8.7% to $18. Over the past week, both SOL and MATIC have "evaporated" nearly 15% and 17.5% of their value, respectively. Both SOL and MATIC saw strong recoveries in the first two months of 2023, but recent fluctuations have pushed their prices back to mid-January levels.

4h Chart of MATIC/USDT on Binance as of 08:00 AM on March 9, 2023

4h Chart of SOL/USDT on Binance as of 08:00 AM on March 9, 2023

According to Coinglass, the liquidation volume over the past 4 hours was not as high as previous market dumps, totaling just over $48 million, with long liquidations still dominating at 96.4%.

Liquidation Value of Cryptocurrencies in the Last 4 Hours, Data from Coinglass as of 08:00 AM on March 9, 2023