Cryptocurrency prices took a tumble on Thursday as news broke that Silvergate Bank, a key player in the industry’s growth, would be shutting down. Bitcoin lost 2% of its value, trading at $21,570.04, according to Coin Metrics, while Ether fell nearly 2% to $1,527.58. The slight downward trend began late Wednesday night, shortly after Silvergate Capital announced it would be winding down its operations and liquidating its crypto-friendly bank.
Cryptocurrency investors seem to have largely priced in the news last week when the company first warned it may not be able to continue operating and shut down the SEN, or Silvergate Exchange Network, according to Conor Ryder, research analyst at Kaiko.
Bitcoin and ether have held up relatively well despite a challenging macroeconomic environment — still the biggest drivers of crypto price action despite a declining correlation between crypto and stocks — and silvergate Bank’s announcement has had little impact on the prices of digital assets.
Bitcoin has been trading sideways for the past few weeks, with its volatility at historic lows. Yesterday, it broke below the key technical level of $22,200. While some investors have welcomed this stability in light of a series of negative industry developments, chart analysts are looking for bitcoin to close above $25,000 to give more meaning to its year-to-date gains, now around 30%.