Bitcoin and Ethereum Experience 8% Weekly Drop Following Silvergate Bank’s Closure
Bitcoin (BTC) and Ethereum (ETH) continue to experience a bearish trend as both cryptocurrencies have seen a significant drop in value over the past week. According to data from CoinGecko, Bitcoin is down 1.7% in the past day and 8.4% in the week, hitting a three-week low of $21,640 on Thursday.
This decline in Bitcoin’s value can be attributed to the recent troubles faced by Silvergate Bank, which was serving numerous crypto businesses, including the collapsed FTX exchange. The San Francisco-based bank announced on Wednesday that it was winding down operations due to “recent industry and regulatory developments.”
Ethereum, the market’s second-largest cryptocurrency, has also seen a similar bearish pattern, shedding 1.5% in value in the past day and 7.9% over the week. The decline in Ethereum’s value can be attributed to the overall market sentiment and the ongoing regulatory crackdown on cryptocurrencies.
Despite the recent dip in value, some experts believe that this is just a temporary setback for both Bitcoin and Ethereum. They argue that the long-term outlook for cryptocurrencies remains positive, as more institutional investors and corporations continue to adopt them as a legitimate asset class.
As the crypto market continues to evolve, it remains to be seen how Bitcoin and Ethereum will fare in the coming weeks and months. However, one thing is certain: the volatility and unpredictability of the crypto market will continue to be a major factor in determining their value.