The cryptocurrency market appears to be bracing for further upheavals as the value of BTC experiences a significant 5% drop to $22,250.
This follows reports of possible bankruptcy for Silvergate bank, a crucial financial institution that serves some of the largest crypto firms.
In response, Silvergate representatives have announced the potential closure of the bank, prompting American exchange Coinbase to cease operations with them.
The sudden news caused Bitcoin to plummet from $23,443 to $22,259 in a matter of minutes, with Ether also falling to $1,566. Interestingly, the crisis at Silvergate emerged only a few hours before the market crash occurred.
Bitcoin to USD Chart
In the aftermath of the crash, the market saw liquidations exceeding $250 million, with traders who employed cryptocurrency margin purchases with BTC and ETH experiencing the most significant losses at $76 million and $40 million, respectively.
Credible Crypto, a well-known cryptocurrency trader and analyst, notes that Bitcoin has found support at $22,243, and if the bulls allow it to break through this level, further market decline should be expected.
However, as long as the rate remains above $21,370, Bitcoin is poised to rise. Galaxy Digital Holdings CEO, Michael Novogratz, had previously predicted that Bitcoin would be worth $30,000 by the end of March.