Bitcoin Price Holds Steady Above $23K As Silvergate Capital Crumbles
Bitcoin (BTC) wobbled a bit early Thursday as crypto-friendly bank Silvergate Capital (SI) shed more than 50% of its value on worries it may not survive, but turned upward in afternoon trading and is now higher by 0.4% over the past 24 hours at $23,500.
California-based Silvergate said in a filing late Wednesday that the impact of recent events – notably the FTX collapse and subsequent regulatory inquiries – raised questions about its ability to "continue as a going concern.” The news led to at least two sell-side downgrades and a wide range of crypto firms pulling their business from the lender. Shares were down 58% shortly before the close of Thursday trade.
Unlike, for instance, the FTX collapse in November, which sent bitcoin plunging to multi-year lows, the looming concerns on Silvergate had little effect on the world’s largest cryptocurrency. The price of bitcoin on Thursday remained in its tight weekly range around the mid-$23,000 area.
That the news around Silvergate has not been working as a negative catalyst “has to be seen as a positive,” said Julius de Kempenaer, senior technical analyst at StockCharts.com.
“If they (crypto traders) really would be panicking, we should have seen that in the price by now,” Kempenaer told CoinDesk in an email. “Maybe things will worsen down the road, but for the time being, the markets seem to be able to digest this without too much problem.”
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