Bitcoin, Ethereum, Dogecoin Slide As Silvergate Crumbles: Analyst Says Apex Crypto's Streak 'Has Been Broken'

Major coins traded in the red on Sunday evening as investors continued to digest crypto-friendly bank Silvergate Capital’s SI failure.

What Happened: Apex cryptocurrency Bitcoin BTC/USD was trading below $23,000 after a volatile trading session. 

Ethereum ETH/USD was exchanging hands below  $1,600. Dogecoin DOGE/USD was trading at $0.074, down 1.65% in the last 24 hours. 

At the time of writing, the global crypto market capitalization stood at $1.03 trillion, a decrease of 0.68% over the last day.

U.S. equities rose on Friday as Treasury yields retreated from their recent highs, with investors gauging the cumulative effects of the Federal Reserve's rate hikes already implemented and taking in the central bank's commentary this week. The S&P 500 rose 1.61% while the Nasdaq Composite climbed 1.97%.

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News Highlights: Binance in 2009, reportedly took a proactive approach to avoid potential legal action from US authorities, developing a plan that included the launch of an American entity. According to a report by the Wall Street Journal, a Binance executive warned colleagues in a private chat that a potential lawsuit from US regulators, who had signaled a coming crackdown on unregulated offshore crypto players, would be like "nuclear fallout" for its business.

Securities and Exchange Commission's (SEC) approach to regulation through “enforcement” is not a “healthy way” to regulate an industry, according to Ripple CEO Brad Garlinghouse. In a March 3 Bloomberg interview, Garlinghouse warned that the SEC's current methodology puts the US at “severe risk” of lagging in the future of blockchain and crypto innovation. He suggested that, given the dynamic and rapidly evolving nature of the industry, this approach to regulation may make the US less attractive to crypto firms and investors.

Analyst Notes: “Bitcoin is declining after a key banking provider for the crypto industry is fighting for survival. Silvergate struggles have been firmly in place all of last year, but now liquidity risks have many crypto traders concerned. The failure to file its annual report on time raised concerns that they might not be able to survive. Several key crypto companies are abandoning using Silvergate and this is bringing back some contagion concerns,” said Edward Moya, senior market analyst at OANDA.    

Michaël van de Poppe, founder and CEO of trading firm Eight, warned that if Bitcoin fails to hold $21,300, altcoins could face significant losses. If the support level breaks, he believes the price of Bitcoin could dip to nearly $19,500, while altcoins could suffer drops of up to 25%. 

Van de Poppe, nonetheless, maintained a more optimistic view overall, suggesting that $40,000 could still appear “in a few months.”

 “Moral of the story: Dollar-Cost Average and have balls to buy when you don’t feel confident,” he advised in part of a subsequent post.

Daan Crypto Trades, a pseudonymous crypto analyst noted that since the breakdown Bitcoin closed each 4 hour candle within a $41 range. “The steak has been broken.”

Analyst Justin Bennett said that Bitcoin is currently seeing a buying spree at the January trend line. He said, nevertheless, the major obstacle now is the monthly open price of $23,130. “If Bitcoin fails to reclaim that level soon, it is likely to trend lower towards the $20,800 liquidity pool.”

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