Bitcoin price plummeted in the past 24 hours, as investor sentiment was shaken after many negative news.
Bitcoin is trading at $19,951, down 8.3% from the last 24 hours, according to Coingecko data, which is the lowest level in about seven weeks. Ether also fell, dropping 8% to $1,416.
Other altcoins are also plunging at a steep rate, with the exception of stablecoins. Following Silvergate’s announcement, stablecoins are now being seen by investors as the ‘primary ramp’ for crypto trading.
Over the past 24 hours, Binance’s BNB is down 5.5%, Ripple’s XRP is down 4.8%, and Polygon’s MATIC is down 5%. The meme coin also plummeted, with Shina Inu and Doge Coin dropping 9.3% and 8.5%, respectively.
Shares of many companies fell deeply
Shares of Silvergate fell rapidly throughout the day, falling 42.1% by market to $2.84.
Silvergate announced intends to cease operations and voluntarily liquidate the bank on Wednesday, ending the operations of one of the most prominent banks in the crypto space.
Brian Rudick, senior strategist at GSR, said that crypto companies in the US have only one bank, Signature.
“It is likely that only major crypto companies, currently, will have access to the banking system in the US, while startups will struggle to access banking services,” said Rudick. “.
In response, shares of smaller crypto banks have plummeted. Signature Bank fell about 12%, while Silicon Valley Bank lost about 60% of its value on the day.
Stocks of crypto companies also fell significantly, with Microstrategy down 9.4%, Coinbase down 7.8% and Jack Dorsey’s Block down 5.3% at market close.
“It’s been a tough 24 hours for crypto companies in general,” said Matt Kunke, senior strategist at GSR, saying the S&P 500 has fallen about 2% in the past three-and-a-half hours of trading.
Part of the decline could be sentiment-related, he said, with investors reducing risk ahead of the release of US nonfarm payrolls data tomorrow.
Another factor could be lawsuit against KuCoin initiated by the New York Attorney General’s office today, Kunke said. The lawsuit alleges that ETH is a security, “increasing the regulatory tension that has been at the heart of the whole month.” The value of ETH started to fall shortly after the news broke.
See also: New York sues KuCoin, claiming ETH is an unregistered security
Grayscale’s GBTC is also down significantly on the day, down 10.8% by market close.
Grayscale bounced back earlier this week after meeting with the US Securities and Exchange Commission (SEC) in court on Tuesday. The asset manager sued the SEC for rejecting a proposal to convert their flagship fund, GBTC, into a Bitcoin spot ETF last June.
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