COIN - Bitcoin slides to over three-week low as Silvergate collapse reignites contagion fears

2023-03-09 09:51:15 ET

Bitcoin ( BTC-USD ) fell to ~$21.6K, its lowest in more than three weeks, as Silvergate Capital's ( SI ) plans to liquidate pushed the cryptocurrency market into yet another spiral amid growing fears that more fallout could be expected.

The top crypto slipped 1.2% to $21.74K at 9.50 am ET, while ether ( ETH-USD ) was down 0.7% at $1.54K. The global crypto market fell to $999.96B, down 0.4% from the prior day, according to CoinMarketCap .

OANDA analyst Edward Moya said Silvergate's ( SI ) decision is "bad news" as the bank was used by many companies. "One thing the cryptoverse lacks is banks willing to take on crypto exposure," he said. "Contagion risks remain elevated and that could keep cryptos heavy over the short-term."

However, some crypto firms reassured customers that their funds were safe. Binance CEO Changpeng Zhao tweeted that the exchange does not have asset losses at Silvergate ( SI ).

Stablecoin issuer Paxos said it has "virtually no exposure" to Silvergate ( SI ). It earlier discontinued payments via the bank.

Coinbase Global ( COIN ) clarified that it has no client or corporate cash at Silvergate ( SI ). "Client funds continue to be safe, accessible & available," the exchange reiterated.

Signature Bank ( SBNY ), which has been limiting its crypto deposit exposure, fell as much as 9.5% .

Other crypto-related stocks in the red include: Cipher Mining ( CIFR ) -2.3% , Riot Platforms ( RIOT ) -1.4% , Marathon Digital ( MARA ) -1.1% .

Now read SA contributor The Digital Trend's take on the saga .

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