🔥 Bitcoin Dumping On Silvergate Contagion Fears

3 Mar 2023

Yesterday, the share price of Silvergate, a cryptocurrency-focused US bank, dropped by nearly 50% in early trading after it delayed publication of its annual report and announced a fresh sale of assets to repay debts, while warning that it was assessing its ability to continue as a going concern. The delay and warning were prompted by its exposure to the collapse of crypto exchange FTX, which it said could hit its profitability, and the possibility of further regulatory scrutiny and legal action. Major partners, including crypto exchange Coinbase, have dropped Silvergate in response.

Source: theguardian.com/technology/2023/mar/02/near-50-per-cent-fall-in-silvergate-shares-over-ftx-exposure-prompts-survival-doubts



Naturally, this is bad news for crypto. A lot of fears about FTX and contagion have been re-awoken and investors decided to dump their tokens.

In my view, Bitcoin looks bearish in the short- to medium-term. In my previous rising wedge analysis I mentioned that a bearish break out could lead us to $21,500, but now I think we can even go lower because this is not a "technical" dump, but a news-related one. Once word gets out that big crypto players got hurt by Silvergate, we might see more (forced) selling ahead.

9 Mar 2023

Not

First target hit🔥

9 Mar 2023

Not

Second target hit as well🚀