Crypto Market Takes a Hit as Silvergate Capital Collapse Sparks Concern

Bitcoin and Ether saw a 4% and 5% drop, respectively, amid concerns surrounding the impact of Silvergate Capital's collapse on the cryptocurrency market.

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Cryptocurrencies are down today as investors follow the latest developments around Silvergate Capital and process the impact of the crypto-bank’s collapse on the broader market.

Bitcoin found itself down more than 4% at $22,364.21, according to Coin Metrics, while Ethereum experienced a 5% “plunge” to $1,565.58.

This, as a number of cryptocurrency companies (including Coinbase, Galaxy Digital, Circle, Paxos and Bitstamp) announced that they will stop accepting and routing payments to and from US bank Silvergate Capital, which deals in cryptocurrency transactions.

Silvergate has made it known that it will not submit its annual report on time and warned of the possibility of being unable to operate for the next 12 months.

Yesterday, Silvergate’s shares even recorded a loss of 57%.

The sell-off was triggered by the announcement by Silvergate – which holds more than $11 billion in deposits and assets – that it will not be able to file its annual report on time and that it is reviewing its viability margins.

The company is working diligently to file its annual report (Form 10-K) as soon as possible, but does not expect to be able to file it before the extension expires.

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