The crypto market has registered a bearish sentiment in the last 24 hours, with the price of Bitcoin and Ethereum falling by 5%. With both major digital assets in a downtrend, the entire altcoin industry is expected to register more selling pressure over the weekend.
According to the latest cryptocurrency price oracles, the market capitalization of total digital assets sits at around $1.07 trillion on Friday, down about 4.5% over the past 24 hours.
The sudden crash of cryptocurrencies is partly due to the Collapse of Silvergate Capital Corp., in which the bank’s shares fell more than 57% on Thursday. According to on-chain analytics firm Santiment, Silvergate Capital withdrew US$312 million from Circle and transferred it to exchanges over the past few hours. Most notably, the Coinbase Global cryptocurrency exchange announced that it would no longer accept or initiate payments to or from Silvergate.
As more cryptocurrency traders fear the repercussions of the collapse of Silvergate Capital, the cryptocurrency market could continue to fall over the weekend.
Analysts identify more catalysts that could send the market down
According to a recent YouTube post by altcoin daily titled “people are panicking’ Bitcoin Ethereum massive unlock”, there are much more pressing issues that should worry the cryptocurrency market. High on the list is the recent announcement by the United States Securities and Exchange Commission that cryptocurrency staking is an unregistered security. In particular, the SEC accused cryptocurrency exchange Kraken of providing unregistered securities through its staking program.
The second big catalyst that could drive cryptocurrency prices much lower is the Bitcoin unlock from Mt.Gox and the Ethereum staking withdrawal that comes with the next Shanghai update. As Elon Musk predicted, Bitcoin will make it, but the crypto winter will be long.
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