Cryptocurrency Market Suffers Second Consecutive Week of Losses
The cryptocurrency market has suffered its second consecutive week of losses, with Bitcoin (BTC) dropping 6.3% and Ethereum (ETH) sinking 4.7%. The start of the third month of the year comes off the back of the first two weeks of losses in 2023, and considering the virtual freefall at the end of 2022, it’s too early to say whether crypto has stumbled back into the woods or not.
The pullback this week appeared to be a reaction to news that crypto bank Silvergate delayed filing its annual 10-K report with the U.S. Securities and Exchange Commission (SEC), causing its stock price to drop 31% in after-hours trading on Wednesday. Coinbase, Tether, and a plethora of other crypto companies were quick to cut their ties to the beleaguered crypto bank.
Investors are concerned about the impact of the Silvergate news on the wider cryptocurrency market, with many fearing that it could lead to a loss of confidence in the sector. However, some analysts believe that the market will recover in the coming weeks, as investors look for new opportunities in the wake of the recent losses.
Despite the recent setbacks, many experts remain bullish on the long-term prospects of cryptocurrencies, with some predicting that they will eventually replace traditional currencies as the primary means of exchange. However, for now, the market remains volatile, and investors are advised to exercise caution when investing in cryptocurrencies.
