Silvergate triggered yet another mini crypto sell-off

<p>Market picture</p><p>Bitcoin
plunged more than 6% to $22.0K early this morning. The plunge into this area
came as a market reaction to the potential bankruptcy of Silvergate. The news
triggered a wave of stop orders on fears that the situation could cause a
domino effect in the industry, as with FTX earlier in the day.</p><p>Technically,
the dip has pushed the price below its 50-day moving average, which does not
bode well for the short-term outlook, although this signal will only be
reliable at the close of the day. The intraday picture is one of tidy buying
after a brief dip. The overall moderately positive sentiment in the global
markets supports the buy-the-dip mood.</p><p>A return
above $22.8 an ounce before today’s close could spark further buying. Closing
near the lows would be an essential signal to spread fear throughout the crypto
market, suggesting a further drawdown to $19.7K in the coming weeks.</p><p>News Background</p><p>Shares in US
holding company Silvergate Capital Corporation, which owns crypto bank
Silvergate, plunged almost 49% on news of a delay in publishing its annual
report to the SEC. The company said it needed „additional time“ to
complete its audit.</p><p>Silvergate
Bank has announced that it may file for bankruptcy due to a massive sell-off
and an inability to repay its debts. Coinbase, the largest US cryptocurrency
exchange, has announced severing its financial relationship with Silvergate
Bank.</p><p>According to
Glassnode, retail bitcoin investors‘ purchases have outpaced coin issuance.
Investors with balances up to 1 BTC („shrimps“) and between 1 and 10
BTC („crabs“) over the past year have bought 105% and 119%,
respectively, more Bitcoins that were mined.</p><p>Ethereum
developers have set March 14 as the date for the Shanghai upgrade on the Goerli
test network. If the test network upgrade succeeds, the main network upgrade
could occur in the second week of April.</p><p>This article was written by <a target=“_blank“ href=““>FxPro</a>’s Senior Market Analyst Alex

This article was written by FxPro FXPro at

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