Silvergate was a major bank located in the USA that was also highly crypto-friendly. It was a prominent pillar in the crypto world and offered banking services to numerous crypto companies.
Silvergate Capital Corp. the parent company, previously announced the discontinuation of the crypto payments network, which significantly impacted the crypto space and crypto prices.
However, the latest update from Silvergate Capital Corp has sent shockwaves through the crypto world as it intends to liquidate its subsidiary, Silvergate Bank.
The crypto space has taken quite a hit, causing the price of major cryptocurrencies to noticeably decline. This also includes Bitcoin.
Here is a price chart by CoinMarketCap that shows the price movement of BTC over the last 24 hours. Following the news of Silvergate Bank’s liquidation, Bitcoin’s price has dropped more than 7%.
The end of Silvergate’s crypto-friendly services is anticipated to increase the regulatory scrutiny surrounding the relationship between banks and crypto assets.
A few years ago, Silvergate was the only crypto-friendly bank. Such a step back then would have been crucial for the crypto space. Even now, the prices of major digital assets have been impacted but the crypto space has seen enough growth to rise out of the current scenario.
Other large-scale companies have also been supporting the crypto space, which includes JPMorgan Chase & Co. The multinational company is in a relationship with the popular exchange, Gemini.
Since cryptocurrencies have made a mark in the world and their utility has become undeniable, it is anticipated that the global banking system will find a way to support crypto.
The price of the flagship crypto assets is also speculated to recover and see a slight surge. Therefore, if you are looking to leverage trade Bitcoin up to 100x, sign-up on Bybit today. You can also use this link to claim a bonus on your first deposit.
