This Week in Crypto – BTC and ETH Crash Following Silicon Valley Bank and Silvergate Collapse
Most cryptocurrencies have recorded losses this week stemming from the collapse of Silvergate and Silicon Valley Bank. Market leaders Ethereum and Bitcoin are among the losers.
The market downturn began last week when it was discovered that crypto-friendly bank Silvergate had failed to submit its yearly financial report to the Securities and Exchange Commission (SEC) on time. The speculation continued this week on Monday when Karine Jean Pierre, the White House Press Secretary, said they were monitoring the situation.
On Wednesday, Silvergate announced it was halting operations. The development fueled a market-wide selloff, sending the total market cap of all coins below $1 trillion.
Price Analysis of Leading Coins
CoinGecko’s data shows that Bitcoin has dropped by 8.7% this week and is changing hands for $20,445 as of writing. Ethereum, the second most popular coin, has posted 7-day losses of 6.9%, and as of Sunday morning, it was trading at $1,461.
Meanwhile, Polygon, Polkadot, Shiba Inu, Avalanche, Uniswap, and Chainlink recorded losses of around 14%. But the biggest losses this week were posted by Filecoin, which dropped by 22% to $5.29; Solana, which fell by 21% to 17.64; and OKB and Dogecoin, which both declined by 20% to $39.71 and $0.065269, respectively.
Regulators’ Bearish Sentiment
This week, several US regulators expressed concerns about crypto. On Monday, Fed Chair Jerome Powell said that while the central bank does not want to discourage innovation, financial institutions must be very cautious when engaging with the cryptocurrency world due to the lack of transparency in that industry and increased fraud cases.
On Wednesday, while Powell was testifying before the House Finacial Services Committee, Congressman Stephen Lynch asked the Fed Chair whether the US Central bank digital currency would wipe out other digital coins. However, Powell replied that he wasn’t in a position to speculate on the impact of a tokenized dollar.
On that day, the chairman of the commodities and Futures Trading Commission (CFTC), Rostin Behnam, said before the Senate Agriculture Committee that the Commission considers Ethereum a commodity. But Behman’s statement contradicts that of the SEC chairman, who insists all cryptocurrencies are securities except Bitcoin.
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