After postponing financial results, investors in crypto lender Silvergate Capital (SI) saw their share price drop by half, sending ripples of negativity through the market on Thursday. Despite the news on Thursday, bitcoin and ethereum prices rose slightly.
Silvergate Capital (SI) shares dropped by half after the crypto lender postponed the release of financial results, which weighed on the value of cryptocurrencies generally on Thursday. Despite the news, cryptocurrency prices rose slightly on Thursday, led by bitcoin and ethereum.
It’s risky to put money into digital assets right now. Investors in any cryptocurrency, regardless of its underlying fundamentals or technical indicators, should have a few primary goals in mind. First, always put safety first by knowing when to cash out, whether to limit losses or maximise gains. Second, make sure you’re set up to capitalise on a possible cryptocurrency recovery.
Why So much fluctuation in Crypto?
Cryptocurrencies haven’t served as inflation hedges despite their initial promise. Instead, they’ve followed the general direction of the market indexes. If you want to keep up with the day’s market trends, read The Big Picture and Market Pulse.
For guidance in the complex world of digital asset investments, check out IBD’s Best Cryptocurrencies And Crypto Stocks To Buy And Watch.
Bitcoin has dropped below the $23,000 level, trading at $22,300, its lowest level in about two weeks. Traders and investors are keeping a close eye on economic data and other factors in case of inflation and interest rate hikes, he said.
How to predict?
Only stablecoins pegged to the US dollar saw significant gains in trading on Friday, while all other major cryptocurrencies saw significant losses. Both Litecoin and Avalanche fell by around 8%, while Avalanche fell by about 9%. Dogecoin and Cardano each lost 7%, while Polkadot and Shiba Inu fell by 6%.
With a drop of about 5 percent in the last 24 hours, the total market capitalization of all cryptocurrencies was trading at the $1.02 trillion mark, a new all-time low. But overall trading volumes increased by almost 9 percent, reaching $52.96 billion.
Coinbase and LedgerX have left Silvergate Bank over worries about the bank’s solvency, which has contributed to a bearish correction in the cryptocurrency market, according to Sathvik Vishwanath, co-founder and chief executive officer of Unocoin.
As a result, Silvergate’s stock dropped nearly 50% to a record low. According to him, the recent market fluctuations show that volatility is rising and that the cryptocurrency market may be weakening in the near future. According to the 4-hour chart, Ethereum’s price has dropped significantly, and it could soon reach the $1400 support level.