• Bitcoin’s price has plummeted to around $22K following Silvergate Bank’s operational issues.
• Coinbase and other crypto firms are no longer accepting or initiating payments with Silvergate.
• Over $240 million of long and short positions were liquidated in the derivatives market during the past 24 hours.
Silvergate Bank Turmoil
Bitcoin’s price took a sharp plunge towards $22K due to turmoil unfolding at Silvergate Bank. The cryptocurrency is currently down 4% on the day and trading at around $22.3K after a vicious hourly candle that saw it lose 5% of its value in minutes.
Silvergate Bank Issues
The crash followed news from Silvergate Bank that they have operational issues, prompting Coinbase to issue a statement that they will no longer be accepting or initiating payments to or from the bank. Other major crypto companies also followed suit, leading many to question if this is indeed the cause for the decline in Bitcoin’s price.
Derivatives Market Impact
The sudden crash has caused an uptick in liquidations, with over $240 million worth of both long and short positions being wiped from the derivatives market within the past 24 hours, according to Coinglass.
Industry participants were quick to react to Silvergate Bank’s news, while some investors remain skeptical as to whether this is really what triggered Bitcoin’s steep decline in price today.
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