Crypto

Cryptocurrency: The price of bitcoin will collapse in a few minutes…

Total panic in the cryptocurrency market in a few hours. This morning, the price of bitcoin fell to $22,200 in 20 minutes, i.e. by 05%. This unexpected drop came as there were reports of operational problems on the side of Silvergate Bank.

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Reasons for the collapse of Bitcoin prices

The price of Bitcoin (BTC) has plummeted since this morning following the recent operational incidents at Silvergate Bank. While some link the two events, other professional traders cite other reasons. This is especially true of Skew, who claims that this crash was due to the Binance spot sale.

In his tweet, the man states: “This move was driven by a large spot sale by Binance directly into the stacked long zone. Therefore, for him, the fall in the price of bitcoin will not be associated with the difficult situation in which he is now. What is certain, however, is that many crypto investors are horrified, anticipating a possible rise in prices in the market.

Silvergate Capital Corporation, connection to FTX?

On March 2, to everyone’s surprise, California-based Silvergate Capital Corporation made a surprise announcement. This cryptocurrency-focused financial institution admits it cannot submit its annual report on March 16. For good reason, its officials claim they lost over a billion dollars in the last quarter of 2022 due to the FTX crash. On top of that, she announces that because of this huge loss, she won’t be able to continue her activities normally.

Of course, these shocking statements did not leave the crypto industry without a voice. Key players such as the exchange Coinbase have automatically decided to suspend or terminate their cooperation with the bank. Also, the shares of the latter in the stock market fell sharply by 32% in just a few hours after the formalization.

In addition, Coinglass is seeing an exponential rise in liquidations over the last 24 hours. They are particularly associated with long and short positions and are valued at approximately US$240 million.

Source: CRYPTONEWS

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