In what was supposed to be a healing stage for Bitcoin as it rises again in the market past its safe valuation, comes another crash to its current market standing to below $20,000. This is because of the recent liquidation of Silvergate Capital, leading to the Silvergate Bank closing down and pulling out of the market.
As Silvergate centers on selling its assets and recuperating from its losses to avoid further demise, it greatly affects the top cryptocurrency, seeing another jump in its status.
Bitcoin Crashes to Below $20,000 After Silvergate
(Photo : DS stories)
Over the past month, Bitcoin saw a significant rally to better days ahead, with an optimistic 2023 to climb its way out of the safe zone, also regarded as its dangerous spot, to a whopping $24,000. However, it died down to around $22,000 and stayed there for a while.
However, in its present valuation, Bitcoin saw another crash which put it back to around $19,000 before it stabilized now to $20,000, as per CoinMarketCap.
The good thing about Bitcoin's valuation now is that it is slowly climbing up the ladder of its valuation again, with its price debuting good traction to rise from its previous crash.
Still, this puts people uneasy over its status, especially with Bitcoin, and the entire cryptocurrency market is known for its volatility and unpredictable events.
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Silvergate Capital's Pull Out from Bitcoin
The main cause for Bitcoin's crash is Silvergate Capital's closing of its crypto bank, along with its liquidation of the company. According to CNBC, the crypto market saw as much as $70 billion gone from its value.
The Silicon Valley Bank wanted to avoid further losses and sold off its $21 billion worth of holdings, after already seeing a $1.8 billion loss.
Bitcoin and its Valuation Problems
Two years ago, in 2021, Bitcoin saw a significant rise in its valuation when it reached its all-time high record of $67,000 and it was before Coinbase's first public offering in the market. This was a significant time for cryptocurrency owners who have BTC holdings, and the value of their money was at its top-performing rate.
However, this was almost short-lived, as Bitcoin dropped valuation down to $50,000, and down to $40,000, eventually dropping to $30,000 where it stayed for a while.
However, when 2022 came, it was one of the darkest times for Bitcoin as its value continued to plunge, particularly as the Russia-Ukraine conflict erupted.
Since then, Bitcoin dipped to its safe valuation at around $19,000 to $22,000, somewhere along this value.
In what was supposedly an optimistic rally for Bitcoin as it saw a boost this 2023, comes another unprecedented downturn of its performance in the market, with Silvergate Capital pulling away from the top coin.
It is yet unknown if Bitcoin will bounce back from this, with one of its major investors already liquidating to avoid further losses.
Related Article: Cryptobank Silvergate to Liquidate Following Market Downturn
