• Bitcoin price risks $23K rerun as Coinbase stock falls over Silvergate Bank’s solvency concerns.
• BTC price action itself avoided major knock-on losses, with traders suggesting current events will not affect Bitcoin itself.
• Silvergate Capital shares were down 40% on the day at the time of writing, while Coinbase Global (COIN) shares had lost 9.65%.
Bitcoin Price Risks Reversion to $23K
The Bitcoin (BTC) price has wobbled over fresh concerns surrounding crypto firm solvency, leading to a potential reversion towards its all-time highs around $23,000. At the time of writing, BTC was down 1.5%, trading at around $22,388 after hitting an intraday low of $21,827.
Silvergate Bank and Coinbase Shares Slip
Data from Cointelegraph Markets Pro and TradingView showed that March 2 saw United States exchange Coinbase drop Silvergate as a client due to “an abundance of caution”. This decision caused the parent company Silvergate Capital’s shares to plummet by 40% on the day at the time of writing. Moreover, Coinbase Global (COIN) shares had lost 9.65%.
Traders Expect No Major Knock-On Effects to BTC Price
Despite these losses in market capitalization for both entities, popular traders and analysts suggested that it would not have major knock-on effects for BTC price action itself. Michaël van de Poppe – founder and CEO of trading firm Eight – commented that people were “piling into positions since the news” but added that there was no real movement on Bitcoin itself. Stack Hodler also noted that even if related companies such as Coinbase or Silvergate imploded overnight, it would not change his personal holdings in bitcoin due to its lack of counterparty risk.
Will BTC Revert Back To All-Time Highs?
It remains unclear whether or not this recent uncertainty will cause BTC/USD to revert back towards its all-time highs around $23K seen earlier this month; however for now it appears that bitcoin is avoiding any major pullback as a result of these developments within traditional finance markets and crypto banking firms alike.
Conclusion
As further developments emerge regarding both cryptocurrencies and traditional financial markets alike it will be interesting to observe how BTC manages to weather any storms ahead; particularly those involving larger financial institutions such as Silvergate or Coinbase themselves