Wednesday, July 24, 2024
HomeCryptocurrenciesBitcoin Volumes Drop Amid Silvergate Uncertainty

Bitcoin Volumes Drop Amid Silvergate Uncertainty

By Marcus Sotiriou, Market Analyst at the publicly listed digital asset broker GlobalBlock (TSXV:BLOK). 

Bitcoin hovers around $22,400, as investor sentiment continues to be bearish amongst Silvergate panic. Negative investor sentiment is backed up by data from digital asset platform Coinshares showing that digital asset investment products saw minor outflows totalling $17 million last week, which was the fourth consecutive week of outflows. This lack of volume within Coinshare’s digital asset platform is further shown when looking at the entire Bitcoin market volume, which averaged $57 billion – 15% lower than normal.

Coinshare’s Short-Bitcoin product saw inflows for a third week totalling $1.8 million. The disinterest from institutional players in the market at the moment is likely due to the regulatory concerns in the US over the past few weeks, in addition to the more immediate concern of Silvergate Bank.

This has stemmed from Silvergate’s connections to FTX and Alameda, leading to Silvergate’s stock price dropping by 95% over the past six months. The bank announced that it was poorly capitalised on Friday and failed to file its annual report by its deadline, leading to Moody’s downgrading the company’s long-term issuer rating. Shortly after this rating downgrade, Silvergate disclosed it was closing its 24-hour money transfer system – the Silvergate Exchange Network. I would be surprised to see if the bank is open in a month with recent developments. A collapse of Silvergate could have ramifications for digital asset platforms who have used them, but also for how other banking partners decide to integrate crypto firms.

Staff Writer posting jobs, articles and collaborative content.

Leave A Reply

Please enter your comment!
Please enter your name here
Captcha verification failed!
CAPTCHA user score failed. Please contact us!

This site uses Akismet to reduce spam. Learn how your comment data is processed.

- Advertisment -spot_imgspot_img

Most Popular

Latest News