Bitcoin Continues to Slide as Silvergate Bank Confirms Winding Down Operations
Bitcoin prices have continued to fall, reaching a multi-week low on March 9th. The decline came as Silvergate Bank, a crypto bank, confirmed that it will be winding down its operations. Ethereum also saw a slight decrease in value.
Bitcoin fell for the fourth consecutive session on Thursday, with the news of Silvergate Bank’s liquidation causing a market reaction. After reaching a high of $22,198.90 on Wednesday, BTC/USD dropped to an intraday low of $21,609.99 earlier today. This decline pushed bitcoin to its lowest point since February 13th, when it traded at a bottom of $21,366.
Looking at the chart, this latest sell-off coincided with the 14-day relative strength index (RSI) falling to its lowest point since November 28th. As of writing, the index is tracking at 36.86, which is marginally below its support point at 37.00.
Despite this, BTC remains the most valuable cryptocurrency, with a market capitalization of over $400 billion. However, the recent decline in value has caused concern among investors and traders.
Silvergate Bank’s decision to wind down its operations is seen as a significant blow to the cryptocurrency industry. The bank was one of the few financial institutions that provided services to crypto companies, and its closure could make it more difficult for these companies to access traditional banking services.
The news of Silvergate Bank’s liquidation comes at a time when the cryptocurrency industry is facing increased scrutiny from regulators. The US Securities and Exchange Commission (SEC) has recently announced that it will be investigating several cryptocurrency companies for potential securities violations.
Despite these challenges, many in the industry remain optimistic about the future of cryptocurrencies. Some analysts believe that the recent decline in value is a temporary setback, and that bitcoin and other cryptocurrencies will continue to grow in value over the long term.
