Silvergate Bank will wind down its operation and liquidate. The liquidation includes the full repayment of deposits. Last week it said it would delay the filing of its annual report as it was assessing its ability to "continue as a going concern."
The bank focused on attracting cryptocurrency companies as clients, but Silvergate has felt industry pressures after several bankruptcies in the crypto industry and fraud allegations against FTX. In Q4 of last year, the bank experienced a run on deposits.
The bank's demise may prove a serious blow to the crypto industry, as crypto firms find it difficult to find traditional banks to do business with.
Amid this backdrop, BTCUSD has dropped into its bearish channel between its lower blue and red bands. Its stochastic has moved into its lower quintile (green rectangle). The longer the momentum-based indicator maintains these levels, the more pressure will apply to the cryptocurrency.
Senior Market Specialist
Russell Shor joined FXCM in October 2017 as a Senior Market Specialist. He is a certified FMVA® and has an Honours Degree in Economics from the University of South Africa. Russell is a full member of the Society of Technical Analysts in the United Kingdom. With over 20 years of financial markets experience, his analysis is of a high standard and quality.