Cryptocurrency

Bitcoin Liquidity Unaffected By Silvergate Fiasco, But Market Depth Remains Low By Benzinga


Benzinga – Despite the ongoing negative news around Silvergate Bank (NYSE: SI), its potential impact on Bitcoin (CRYPTO: BTC) liquidity has not been as significant as many in the market may have anticipated.

The recent Silvergate fiasco has not played a strong role in liquidity yet, according to financial data and services firm Kaiko.

The bank on Thursday admitted that it may struggle to remain solvent due to significant losses, sending its stock price spiraling down nearly 56% in intraday trading.

Major players in the crypto industry such as Coinbase Global Inc (NASDAQ: COIN), Galaxy Digital Holdings Ltd (OTC: BRPHF), and Paxos Trust have moved quickly to sever ties with the beleaguered bank.

This has sparked concerns among market participants that Silvergate’s potential legal troubles could have a significant impact on liquidity, particularly in the Bitcoin market.

However, the latest report by the financial data firm suggests that the impact on liquidity has been relatively limited so far.

Image: Courtesy of Kaiko

Also read: Flip It And Restrict It: FTX Founder Sam Bankman-Fried’s Bail Conditions Include Non-Internet Connected Phone

The report also notes that even when the market depth is denominated in US dollars ($), a similar trend is observed.

Despite a slight recovery in the first months of 2023, coinciding with Bitcoin’s recent rally, the market depth is still well below the pre-FTX levels.

Image: Courtesy of Kaiko

The report further adds that the market depth has been relatively stable over the past 30 days, except for a dip towards the end of February.

Meanwhile, a large red bar appeared on trading charts of major cryptocurrencies on Friday, with the crypto market’s overall value plummeting by hundreds of millions of dollars within hours.

Over the last seven days, Bitcoin’s price dropped by 3.2%, while Ethereum (CRYPTO: ETH) saw a decline of 1.7%.

Next: Gains Network Emerges As A Rising Star In Arbitrum’s Thriving $2B DeFi Ecosystem

Photo: Shutterstock

© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Read the original article on Benzinga


Get The App

Join the millions of people who stay on top of global financial markets with Investing.com.

Download Now



Source link

Leave a Response