03-09-2023 icon

Bitcoin tanks 6% as Silvergate Bank shuts down

By Lucy Adegbe

Bitcoin (BTC) dropped about 6% in the past 24 hours to sink below $21,000 for the first time in seven weeks as investors continued to fret about the fallout from crypto-friendly bank Silvergate Bank’s implosion.

On Wednesday Silvergate Capital (SI), the parent company of the lending-based bank said that Silvergate Bank would “voluntarily liquidate” its assets and shutter operations.

The largest cryptocurrency by market capitalization traded as low as $20,533 on Thursday, its lowest level since Jan. 18, before regaining some ground to hover just over $20,600.

In the past 24 hours, bitcoin posted more than $60 million in liquidations, with over 95% of them being long positions, Coinglass data shows.

Most major cryptos were also recently in the red. Ether (ETH), the second-largest crypto in market value, was recently down 5% from Wednesday, same time, to change hands at $1,483.