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Bitcoin price slides 5% in 60 minutes amid Silvergate uncertainty

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Bitcoin price slides 5% in 60 minutes amid Silvergate uncertainty

What are the economic implications of a sudden decline in Bitcoin prices?

Bitcoin Price Slides 5% in 60 Minutes Amid Silvergate Uncertainty

The bitcoin price dropped 5% in 60 minutes, with investors apparently concerned about Silvergate Bank’s uncertain future. The decline followed a week of uncertainty surrounding Silvergate’s decision to stop providing U.S. dollar deposit services to some of its foreign customers.

What Happened?

Silvergate Bank, a financial institution providing services to customers wanting to deal in crypto, recently announced that it would stop providing U.S. Dollar deposits to some of its foreign clients. This came after the bank closed its doors to new customers in April due to an overwhelming number of applications.

The decision to cease U.S. Dollar deposit services for some foreign customers sparked a wave of unease amongst bitcoin investors, as many of these customers used the bank to purchase and store their bitcoin.

What Caused the Price Decline?

The decline in the bitcoin price was attributed to investors’ concerns that the impact of the Silvergate Bank decisions could pose a significant risk to bitcoin’s price.

This suspicion was compounded by the fact that the bank is a major provider of institutional investor services, and has held a significant share of the market for the last few years.

What Happens Next?

It remains to be seen what the long-term impacts of the Silvergate Bank decisions will be. It is worth noting that the bank has made it clear that it will continue to support services to other customers and provide them with secure U.S. Dollar services.

Investors should also keep an eye on the silver markets, as demand for the metal could have a bearing on the price of Bitcoin.

Conclusion

The recent decision by Silvergate Bank to cease U.S. Dollar deposit services to some of its foreign customers has triggered some uncertainty among bitcoin investors, leading to a 5% drop in the price over a 60 minute period.

The bank has assured customers that it will continue to provide services to them, but investors must also monitor silver markets as any impacts to prices could affect the price of bitcoin.
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How did speculation about a possible merger between Silvergate and Kraken impact the price of Bitcoin last year?

Just a few days ago, the price of Bitcoin (BTC) saw a sharp drop as the asset lost 5 percent in just 60 minutes. The cause for this sudden dip is still uncertain, but many attribute it to the financial woes of crypto exchange Silvergate.

Silvergate is a California-based crypto exchange that has been dealing with liquidity issues lately. In a recent filing, the company reported that it recently cut ties with several high-risk clients and that it is facing an uncertain future ahead.

This news has had a direct effect on Bitcoin’s price as the asset has slid by nearly 5 percent in just one hour. The price of Bitcoin fell from $37,875 to $35,895, wiping some $1,980 in value.

It appears that this news was the driving force behind the price dip, as other major cryptocurrencies such as Ethereum and Litecoin also saw a similar drop in price.

At the moment, it is unclear what the long-term price implications of this news will be. However, the short-term effect has been immediate and it has added to the volatility of the cryptocurrency market.

It is important to note that this is not the first time that a story about Silvergate has had a direct impact on the price of Bitcoin. Last year, speculation about a possible merger between Silvergate and Kraken sent Bitcoin prices soaring.

At this point, it is difficult to predict how the market will react to the news. It is clear, however, that the price of Bitcoin has been directly impacted by news about Silvergate and that this should be monitored closely.

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