The world of cryptocurrency saw a significant crash last week, and this all centers on Silvergate Capital's recent liquidation of its assets in the digital blockchain world to avoid further losses. CryptoWatch brings you the roundup and a closer look at what happened to last week's fiasco, one of which saw another Bitcoin price crash back into dangerous waters.
For now, the crypto bank and cryptocurrency see an unfortunate chain of events, centering on their recuperation after the market's downturn, on what is supposedly its road to growth.
Silvergate Capital Liquidates, Closing Down Bank
Silvergate Capital, the company behind the famous Silicon Valley Bank, recently announced that it is liquidating its assets and company, to avoid further losses it incurred for its long-time holdings of Bitcoin.
"The Bank's [wind-down] and liquidation plan includes full repayment of all deposits. The Company is also considering how best to resolve claims and preserve the residual value of its assets, including its proprietary technology and tax assets," the crypto bank stated.
It came as shocking news to the public as the industry was now seeing an upwards trend for the coin prices, with a climb back to its previous valuation for different tenders, including the top crypto, Bitcoin.
"In addition, Silvergate Bank made a decision to discontinue the Silvergate Exchange Network (SEN), which it announced on March 3, 2023 on its public website. All other deposit-related services remain operational as the Company works through the wind down process. Customers will be notified should there be any further changes," the company added.
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Bitcoin Price Crash is Due to Silvergate
Following Silvergate's liquidation and closing down of its bank, the famous cryptocurrency, Bitcoin also saw a significant crash in its valuation, and instead of seeing further growth to the coin, it saw a crash to below $20,000, back to its square one.
This 2023 saw a significant performance for the top coin as it was rallying for several months and weeks now, thought to be the supposed return to normal prices.
BTC saw an all-time high this year at around $25,000 at its peak, even closing in on $26,000.
This is because of Silvergate's significant holdings on Bitcoin, selling off $21 billion worth of holdings, after already seeing a $1.8 billion loss.
Top Coin Prices Now
Following a nerve-wracking crash of Bitcoin last week, the top coin's value is starting to see the light at the end of the tunnel, as after its $20,000 crash, it is now at $22,000 and climbing. Bitcoin saw a 0.38 percent climb over the past seven days, and despite being a small percentage only, its prices are returning to how it was at the start of the year which may be a good indication of its normal rally.
On the other hand, the second top coin in the market, Ethereum, which also saw a significant effect on Bitcoin and Silvergate's crash, is reporting a 2.43 percent increase over the past seven days. Ether is now valued at $1,600 which is a good indication that the crypto is seeing stability and is now climbing toward normal rates.
Coming in at third is the phenomenal stablecoin Tether USDT which remains at the $1.00 valuation, with a slight increase and decrease trends in the past week.
