Crypto prices tumbled Thursday after Silvergate, a bank that has been at the forefront of the industry’s growth, made the decision to shut down. Bitcoin plummeted 2% to $21,570.04, according to Coin Metrics. Ether lost nearly 2% and was last trading at $1,527.58.The slight move lower began late Wednesday, a few hours after Silvergate Capital announced it would wind down operations and liquidate its crypto-friendly bank.
Cryptocurrency investors didn’t seem phased by the news that the company may not be able to continue operating, as the move was relatively small. This indicates that the news was priced in last week when the company first warned it may not be able to continue operating. It shut down the SEN, or Silvergate Exchange Network, according to Conor Ryder, research analyst at Kaiko.
Bitcoin and ether have held up relatively well despite a challenging macroeconomic environment — still the biggest driver of crypto price action despite a declining correlation between crypto and stocks.
Bitcoin’s stability has been welcomed by some investors in light of a series of negative industry developments, but chart analysts are looking for the cryptocurrency to close above $25,000 to give more meaning to its year-to-date gains, now around 30%.