Another crypto crash is underway as Bitcoin and Ethereum prices drop drastically. The crypto market was thrown into limbo after the Bitcoin dump, causing the entire market to lose more than $60 billion in an hour. This is unprecedented by many, as some expected the crypto market to have its way till at least the middle of the year. The crypto market had started the year well, with Bitcoin passing several figures and reaching even $25k at one point. But it has all come down after this week's Bitcoin dump. It took down the price of Bitcoin to less than $23k.
Bitcoin and Ethereum weren't the only cryptocurrencies affected by the dump. Other top altcoins, such as Solana, ADA, MATIC, and others, took a hit after the Bitcoin dump. As many know, Bitcoin's price affects other cryptocurrencies in the market, and it wasn't different this time. Many cryptocurrencies were leading the way in terms of losses, and others, despite losing, are getting back to a bullish trend.
In the Asian Market of Hong Kong, Bitcoin fell 3.22% in the past 24 hours to US$22,827, a huge difference from last month's price. According to data provided by coinmarketcap.com, the recent loss from Bitcoin extends its weekly loss to 4.78%. For Ethereum, it wasn't different, as it also suffered heavy losses in the market. Ethereum reduced in price by 3.19% to US$1,602. When the weekly price charts are compared, the staking blockchain suffers losses reaching up to 3.33%.
In Asia, the losses were much higher than in other parts of the world. The losses recorded around Bitcoin and Ethereum reached up to 5% in the Asian markets. But Bitcoin and Ethereum's losses have not affected their 2023 outlook that much. Looking at their figures, both are still up by about 40% since the year started. Among the top cryptocurrencies affected by the Bitcoin dump, Polkadot took the biggest hit and is currently at US$6.08 after losing more than 6% in the past 24 hours.
Another FTX Victim
Apart from the heavy bearish trend recorded in the crypto market, there are reports that the U.S.-based cryptocurrency bank Silvergate Capital Corp. might close down due to the effects of the FTX collapse.
In a letter submitted to the Securities and Exchange Commission, the firm said they are evaluating its ability to continue as a business entity.
According to the letter to SEC, the company said that the losses they suffered due to the FTX collapse "will negatively impact the regulatory capital ratios of the Company and the Company's wholly owned subsidiary, Silvergate Bank (the "Bank"), and could result in the Company and the Bank being less than well-capitalized."
"In addition, the Company is evaluating the impact that these subsequent events have on its ability to continue as a going concern for the twelve months following the issuance of its financial statements. The Company is currently in the process of reevaluating its businesses and strategies in light of the business and regulatory challenges it currently faces," the company added.