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Investing.com – The market experienced violent declines during the past few hours, as currencies were affected by the bankruptcy of the famous crypto lender “Silvergate”, which prompted Bitcoin to fall below $20,000 levels, to record its largest daily loss in 4 months during these moments. of today’s transactions.
Silvergate Capital, one of the most well-known US banks heavily involved in cryptocurrency, said on Wednesday that it would cease operations and start liquidating the bank’s assets. Silvergate Bank shares are now down in pre-opening trading by 42.16%.
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New bankruptcy
Silvergate Capital said it would cease operations and begin liquidating the bank’s assets.
Binance, the world’s largest cryptocurrency exchange, said it is not doing business with Silvergate Bank, hoping to calm the nerves of customers sparked by the bank’s collapse on Wednesday.
Binance founder and CEO Changpeng Zhao tweeted shortly after Silvergate declared bankruptcy that “Binance has no asset losses on Silvergate.”
The decision to close the bank comes after the company warned last week that it had sold additional bonds at a loss this year, and that further losses could mean the bank “could underperform”.
This announcement shows the extent of the impact on the digital asset sector since the fall of FTX, which declared bankruptcy last November.
Silvergate said in a statement that the decision to freeze its bank was the “best way forward” in light of “recent industry and regulatory developments.” The bank added that the liquidation plan includes paying deposits in full.
Silvergate reported a loss of $1 billion last quarter, as investors attempted to withdraw more than $8 billion in deposits.
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organizational attack
Michael Barr, a member of the US Federal Reserve, said banks should be wary of investing in cryptocurrencies, noting that regulators will give them guidance on how to manage cryptocurrencies soon.
“Banks should take a cautious approach while engaging in practices related to cryptocurrency trading,” he continued.
He also confirmed that the Fed will tighten control over the crypto market, especially after the recent collapses in the sector, which caused many to lose their money after the prices fell.
interest concerns
The US Federal Reserve Chairman, Jerome Powell, confirmed that at the next meeting, and that what will determine this percentage is the upcoming data. Confirming that the final interest rate may be higher than expected.
“We have specific goals, which are restoring price stability and making optimal use of the labor market,” according to Powell. He stressed, “If the economic data requires a further rate hike, we will do so.”
Investors are awaiting the US non-farm payroll data, which is expected to be released today, to assess the possible path to raise interest rates in the US Central Bank.
market now
The market capitalization of the cryptocurrency market fell by 7% to $928.45 trillion. The value of trading in digital currencies increased by 55% during the last 24 hours, to record $69.40 billion.
The price fell during today’s trading by 8% to $19,922. The market value decreased to $384.71 billion. While recording weekly losses of 11%.
While Ethereum fell by 8.1% to $1405.9, and is declining weekly by 10.16%.
It fell 11.8% to $72.79.
While the price of Binance Coin fell by 5.6%, to record $272.24.
The price of a currency decreased by 6.2% from its value, to record $0.3681.
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