Crypto market takes a hit as Silvergate Bank’s future comes into question

The collapse of Sam Bankman FriedIt is FTX is still a fresh sore in the cryptocurrency market. There has recently been panels of a possible recovery, but the market was hit by yet another setback when trading began early Friday in Hong Kong as major crypto exchanges – including Coinbase, and Gemini – announced they would suspend trading. business with California-based Silvergate Bank.

Silvergate announced on a Wednesday Filing with the SEC that its annual report would be delayed because it is “currently analyzing certain ongoing regulatory and other inquiries and inquiries” regarding the company. As CoinDesk noted that Silvergate involved regulatory scrutiny in another section of the filing, referring to “investigations by our banking regulators, investigations by Congress, and investigations by the U.S. Department of Justice.”

Thursday sparked reactions to Silvergate’s filing of CoinbaseCircle, Paxos,, Bitstamp, Cboe Digital Markets, Galaxy Digital and Gemini – exchanges said they were suspending business with the bank, including transfers (ACH). So when Friday’s business started in East Asia, Bitcoin fell, but not as badly as Silvergate stock, which lost more than half its value on Thursday in US markets. The drop in cryptocurrencies has also affected all major cryptos except BTC and ETH.

Nick Ruck of Web3 studio ContentFI said CoinDesk that “the institutions are a bit nervous” because Silvergate may have “problems”.

As CoinDesk noted, the selloff was extreme enough to cause intermittent outages on Coinbase’s website.

Bitcoin was trading at around $22,400 early Friday in the US, against a 24-hour high of $23,553, and Ethereum was trading at $1,570 after hitting a 24-hour high of $1,657.

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