In the case of ethereum In one day, it went from trading at US$1,648 to US$1,569, when it was believed that its floor was settling at US$1,600.
The rest of the cryptocurrencies it managed to register losses of more than 7% in the last wheel.
The sharp fall experienced by digital assets as a whole was driven by the Silvergate shock and fueled by expectations that the Federal Reserve would raise rates given the persistence of inflation.
Silvergate it lost up to 50% on Wall Street after it postponed the presentation of its 2022 reports. The bank is one of the few considered “crypto friendly”. As detailed by the expert in financial assets Iñaki Apezteguía in dialogue with Ámbito, Silvergate was closely linked to Alameda Research, the counterpart company of FTX and through which the missing funds of the company led by Sam Bankman Fried were channeled.
“That’s why the delay in filing the report raised fear now again and, since Silvergate He requested a strong loan to sustain himself despite the crypto crisis, this delay causes nervousness and has repercussions in a strong drop in Bitcoin”, describes Apezteguía.
Silvergate Capital closed its Silvergate Exchange Network (SEN) on Saturday as a “risk-based” decision after a second downgrade by ratings agency Moody’s. The firm added that its depository services remain operational.
The shutdown comes after the agency Moody’s downgraded Silvergate’s deposit rating to Caa1 from Ba3 after the company delayed filing its annual report with the US Securities and Exchange Commission. Moody’s says the company is likely experience a drop in deposits that will force you to sell more securities.
On the other hand, the firm was affected by a demand collective action filed in the Southern District of California in January 2023 for the laundering of 425 million dollars by South Americans linked to smuggling and drug trafficking.
In parallel, the persistence of inflation in the United States once again feeds the expectation that the Federal Reserve will raise interest rates again, which strengthens the dollar and bonds and moves interest away from risky assets.
Source: Ambito
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