Bitcoin remains at $22,000 despite Silvergate shock
Bitcoin is maintaining the $22,000 range for two days in a row. It seems that the shock to the cryptocurrency market due to Silvergate Capital’s concerns about a bank run (exodus of large amounts of funds) lasted only one day.
According to CoinMarketCap, a global coin market relay site, on the 5th, Bitcoin is recording $22,353, down 0.04% from 24 hours ago, as of 9:00 am on the same day.
Bitcoin is holding on to the $22,000 mark. Previously, Bitcoin plunged more than 5% on the 3rd, threatening a collapse of $22,000.
It was because of the news that ‘Silvergate Capital’, a bank specializing in cryptocurrency, was facing a bank run (large-scale withdrawal of funds).
Silvergate is a bank that is a member of the Federal Reserve, the central bank of the United States, and has served as a gateway between cryptocurrency and existing banks.
However, Silvergate suffered a loss of $1 billion (1.3056 trillion won) in the fourth quarter of last year due to the FTX bankruptcy. In addition, customer deposits of 140 dollars (approximately 18 trillion won) were withdrawn.
As concerns about Silvergate’s financial difficulties materialized, cryptocurrency companies even stopped doing business with Silvergate one after another.
Accordingly, Silvergate delayed its annual 10-K report to be submitted to the Securities and Exchange Commission (SEC), the US securities regulatory authority, on the 1st.
The 10-K report is a report that all listed companies must submit at the end of the fiscal year according to SEC regulations.
Bitcoin plummeted on concerns that the crisis from Silvergate would spread to the entire cryptocurrency market, but it is analyzed that the shock from Silvergate is limited as it still holds the $22,000 level.
