Major Cryptocurrencies Plunge Over 5% Amid Silvergate Woes and Mt. Gox Release
Cryptocurrencies, including Bitcoin and Ether, suffered significant losses as trading began in Hong Kong on Friday, with both falling more than 5%. The decline was triggered by customer departures from Silvergate, which saw its stock tumble 58% during Thursday’s US trading. The situation at the bank, which has been dogged by litigation and regulatory issues, led to institutional nervousness and contributed to the sell-off. ContentFi’s Nick Ruck also highlighted the release of bitcoin by Mt. Gox, which would increase its circulating supply, as another factor driving volatility. The downturn affected major crypto exchange Coinbase, which experienced connectivity problems.
Crypto Markets Recover Slightly After Steep Losses
Bitcoin’s price plunged to an intraday low of $22,020 as trading began in Asia, while Ether fell to $1,550, with both recovering somewhat afterwards.
Bitcoin’s market cap fell over $20 billion to $431.9 billion, according to CoinMarketCap. Open interest in bitcoin futures declined 8.8% in the last four hours, according to Coinglass. Open interest for ether was down 5%.
Source: CoinDesk
