Bitcoin, Ethereum, Dogecoin slide as Silvergate crumbles

Major coins traded in the red on Sunday evening as investors continued to digest crypto-friendly banks Silvergate Capital (NYSE:SI) failed.

Cryptocurrency Profits (+/-) Price (8:30 PM EST)
Bitcoin -0.45% $22,464
Ethereum -0.98% $1,567
Dogecoin -1.65% $0.074

What happened: Apex cryptocurrency Bitcoin (CRYPTO: BTC) traded below USD 23,000 after a volatile trading session.

Ethereum (CRYPTO: ETH) traded hands below USD 1,600. Dogecoin (CRYPTO: DOGE) was trading at $0.074, down 1.65% in the past 24 hours.

At the time of writing, the global crypto market cap stood at $1.03 trillion, down 0.68% from the previous day.

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US equities rose on Friday as government bond yields retreated from their recent highs, with investors gauging the cumulative effects of the Federal Reserve’s already implemented rate hikes and taking into account the central bank’s comments this week. The S&P 500 rose 1.61% while the Nasdaq Composite rose 1.97%.

view more: Best Crypto Day Trading Strategies

News Highlights: Binance reportedly took a proactive approach in 2009 to avoid potential legal action from US authorities, developing a plan that included launching a US entity. According to a report from the Wall Street Journal, a Binance executive warned colleagues in a private chat that a possible lawsuit from US regulators, who signaled impending action against unregulated offshore crypto players, would be like “nuclear consequences” for his company .

Securities and Exchange Commission (SEC) approach to regulation through “enforcement” is not a “healthy way” to regulate an industry, according to Ripple CEO Brad Garlinghouse. In a March 3 Bloomberg interview, Garlinghouse warned that the SEC’s current methodology puts the US at “serious risk” of being left behind in the future of blockchain and crypto innovation. He suggested that given the dynamic and rapidly evolving nature of the industry, this approach to regulation could make the US less attractive to crypto companies and investors.

Comments from analysts: “Bitcoin falls after a major banking provider for the crypto industry fights for survival. Silvergate struggled hard over the past year, but now many crypto traders are concerned about liquidity risks. Failure to submit the annual report on time raised concerns that they might not survive. Several major crypto companies are stopping using Silvergate and this is bringing some contagion issues,” said Edward Moya, senior market analyst at OANDA.

Michael van de Poppefounder and CEO of trading firm Eight, warned that if Bitcoin fails to hold on to $21,300, altcoins could suffer significant losses. If the support level breaks, he thinks Bitcoin’s price could drop to nearly $19,500, while altcoins could fall as much as 25%.

Van de Poppe nevertheless maintained a more optimistic view overall, suggesting that $40,000 could still appear “a few months from now”.

“Moral of the story: Dollar-Cost Average and have balls to buy if you lack confidence,” he advised in part of an upcoming post.

Dan Crypto Trades, a pseudonymous crypto analyst noted that Bitcoin has closed within a $41 range every 4-hour candle since the outage. “The steak is broken.”

analyst Justin Bennett said Bitcoin is currently seeing a buying wave on the January trendline. However, he said the biggest hurdle right now is the monthly opening price of $23,130. “If Bitcoin fails to regain that level quickly, it will likely fall toward the $20,800 liquidity pool.”

Read Next: Web3 Token Surpasses Bitcoin, Ethereum in Weekly Gains with 33% Rise on Microsoft Tie-Up

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