Assessing the impact of Silvergate episode on the crypto market

ambcrypto.com:

Coinbase on 2 March announced that it had frozen accepting or initiating payments to or from Silvergate. This episode happened as Silvergate, one of the most influential banks in the digital asset industry, revealed that it would delay the filing of its annual report, igniting panic in the crypto space. 

In light of recent developments & out of an abundance of caution, Coinbase is no longer accepting or initiating payments to or from Silvergate.

— Coinbase (@coinbase) March 2, 2023

Not only Coinbase, but several other crypto entities such as Circle, and Crypto.com also announced the suspension of Automated Clearing House (ACH) transfers with Silvergate.

As the news caught fire, the global crypto industry’s market capitalization registered a decline of 4% in the last 24 hours, and as per LunarCrush, bearish sentiments shot up unexpectedly. 

Source: LunarCrush

Read Bitcoin’s [BTC] Price Prediction 2023-24

In fact, the largest cryptocurrencies such as Bitcoin [BTC] and Ethereum [ETH] were also affected. Lookonchain’s data suggested that the news initiated a sell-off. As per the tweet, a whale transferred 15,400 ETH worth over $25 million to Binance.

The whale bought 8,599 $ETH with 11.48M $USDC and received 7,150 $ETH ($9.01M) from #Binance in December 2022.

The average buying cost is $1,305, and selling $ETH at today's price could make a profit of $4M! pic.twitter.com/5No1CDqDDc

— Lookonchain (@lookonchain) March 3, 2023

The sell-off further pushed ETH’s price down, and at press time it was trading at $1,569.34 with