On Wednesday, Silvergate Bank publicly announced its problems with the SEC over a filing that will delay its financial report. The crypto bank then decided to suspend payments to its Silvergate Exchange Network. This created fear and uncertainty among investors, prompting a bank run resulting in a billion dollar loss!
Silvergate Bank is the main provider of payment networks for many cryptocurrencies, so the run on banks has had a big impact on the industry. Silvergate is also well known for its collaborations with FTX and Alameda Research, and indeed suffered a whopping $14 billion in losses in 2022. How will the bank’s recent SEC troubles affect some of the major crypto coins and tokens?
Latest DETI Developments
Dogetti (DETI), the main cryptocurrency meme, has yet to be officially released. However, thanks to the strong community spirit and attractive features, the token has already managed to attract a large “family” of investors.
Dogetti, Bitcoin and Ethereum: price prediction after the 6 money scandal
Although DETI is still in the early stages of pre-sales, it already received an official contract address last week. A contract address is an address created using cryptographic technologies that allow you to buy and sell cryptocurrencies. This is an exciting move that will establish a canine-themed piece in the industry. In addition, the DETI team has released a limited launch code (WISEGUY25) that offers a 25% discount on all tokens in Phase 1 of the presale.
Since Dogetti is still in the pre-sale phase, most investors assume that the dust regarding the damage caused by Silvergate will settle before the token launch. In addition, cryptanalysts predict that these unfortunate events will have little to no effect on DETI.
Dogetti, Bitcoin and Ethereum: price forecast after the financial scandal 7
Bitcoin bear market
Due to Silvergate’s complications, Bitcoin’s (BTC) latest price move removed $20 billion from its market cap, which is now $431 billion. The price of the coin fell from $23,800 to $22,300, and many other coins such as Solana (SOL), Cardano (ADA) and Polygon (MATIC) suffered losses of 4% to 5%. BTC is currently facing strong selling pressure following the decision by Coinbase and Paxos to move from Silvergate to alternative banking partners.
On March 4, BTC hovered around $22,350. However, were it not for recent events, analysts are predicting that BTC would have hit $25,000 this week! If the situation worsens, the coin could even top $22,000 and drop to $21,600. BTC is currently hovering around $22,400, but if it manages to top $23,000, we could see a new bull cycle for BTC.
Can Ethereum recover?
Cryptocurrency investors experienced another major banking crash on Saturday, causing Ethereum (ETH) to lose 0.19% after falling 4.73% on Friday. This brought the price of the coin down to $1,567, below 1,600 points for the first time since mid-February! ETH peaked at $1578 this morning but has struggled with the $1630 resistance level.
Dogetti, Bitcoin and Ethereum: price forecast after the financial scandal 8
Given Silvergate’s latest banking drama, ETH charts point to more bearish cycles before things improve. However, Ethereum managed to keep the price above $1550, which it has not exceeded since the beginning of February, and even then quickly recovered to $1600 in a month in just a few days.
So, even if the price of ETH continues to decline, there is a good chance that it will recover fairly quickly. One can only hope that the possible impending bankruptcy of the Silvergate bank does not affect other companies associated with the cryptocurrency in its path. All things considered, crypto analysts still believe that ETH will likely return to $1,700 once things calm down. They also predict that the coin could top the $2,000 mark by the end of 2023 and be on track for a full recovery!
Dogetti, Bitcoin and Ethereum: price prediction after the Money 9 scandal
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