Silvergate Shock in Crypto – Last Minute Turkey and World News

SHAFAQNA TURKEY – New developments related to Silvergate, which have become the biggest risk in the crypto asset markets in the recent period, have caused a wave of selling in the market. Bitcoin fell below $20,000.

The problems faced by two financial institutions in the US have caused concern on Wall Street and in the crypto asset markets.

Silvergate Capital, which initially focused on the cryptocurrency markets, announced on Wednesday that it plans to cease operations and liquidate its bank. The company also said it plans to fully repay all deposits within the company.

Silvergate, which has become the largest crypto-focused bank in the US, had a deposit of $14 billion. However, the Fed’s aggressive rate hikes, as well as the collapse of FTX in November, took a toll on the bank.

Finally, Silicon Valley Bank (SVB), which lowered its future targets by announcing a $2.3 billion capital increase and huge losses of its $1.8 billion bond portfolio, rocked US bank stocks.

Shares of PMorgan, Bank of America and Wells Fargo fell more than 5 percent, while the banking index fell as much as 8 percent. The events have also led to hard selling in the crypto asset markets. Bitcoin has been tested below $20,000. Ethereum also saw $1,410.

In a statement Thursday, the SVB CEO urged investors to remain calm. Jens Nordwig, founder of companies such as Exante Data and Market Reader, said: “Many of my clients are asking, ‘Who’s next?’ Whalen Global Advisors Chairman Christopher Whalen said: “Silicon Valley Bank is the tip of the iceberg. I’m not worried about the big ones, but the small ones will be adversely affected. Most will have to raise capital,” he said.

Bloomberg