Bitcoin’s price is falling again as another crypto-friendly institution announces plans to liquidate. This time, the victim is Bitfinex, which is one of the world’s largest bitcoin exchanges. Bitfinex has been struggling to keep up with competition from other exchanges, and it looks like its days are numbered.
Silvergate Bank said that it would begin winding down operations in accordance with applicable regulatory processes, claiming that all customer funds would be repaid. The bank has been struggling to keep up with the ever-changing banking regulations, and it has been decided that this is the best course of action for the customers and the bank itself. Thank you for your understanding during this time.
Silvergate Bank has announced that it will be winding down its operations and voluntarily liquidating the bank. This decision was made in light of recent industry and regulatory developments.
The bank is winding down and plans to liquidate, which means that all deposits will be repaid in full.
Bitcoin prices plummeted by over $100 in a matter of minutes on Friday following the news that J.P. Morgan had decided to discontinue its own internal cryptocurrency project. The digital currency had already begun to dip in price last week when concerns about the bank first began to surface.
Since the start of the month, the world’s biggest cryptocurrency has been on a downward spiral, having fallen below $21,700 on Thursday morning.
Cryptocurrencies across the board plummeted on Tuesday, with the overall market cap dropping below $1 trillion for the first time since mid February. Ethereum (ETH), Cardano (ADA) and Dogecoin (DOGE) were among the worst hit, seeing losses of more than 10%.
The collapse of a prominent bank within the cryptocurrency industry has once again raised concerns about the health of the crypto sector in the US. Less than a year after the collapse of leading exchange FTX, this latest development is another blow to the industry.
“Cryptocurrencies are risky and volatile, and this is just another example of why banks need to be careful about relying on them,” said Ohio Democrat Senator Sherrod Brown in a statement.