Cryptocurrency markets took a blow on Friday following news that silvergate bank, a popular financial institution among crypto companies, has lost its biggest client. The crypto market prices slashed significantly as investors addressed the news, sending shockwaves through the digital space.
How much Loss was Experienced in Digital Space
The news of the split leads to a major fall in the prices of various cryptocurrencies. Bitcoin, the leading digital asset, suffered a drop of 4.8%, while other popular coins such as ethereum, cardano, solana, shiba, and dogecoin also experienced significant declines, dropping by 3.9%, 6.3%, 8.3%, 9.9%, and 5.5%.
Silvergate bank also experienced a major drop in its shares
The loss of Coinbase as a client also hardly hit silvergate bank, as the coin base was a major contributor to the bank’s deposits. As a result of the recent split silvergate’s shares slashed by 60.55% over the last week to $5.76.
Moreover, the fallout is likely to harm other crypto exchanges that leaned on silvergate bank’s services. Investors in the cryptocurrency market are already experiencing the heat of the split, with some seeing it as a sign of shakiness and distrust in the market.
The split between silvergate bank and coinbase has outlined the danger that cryptocurrency exchanges are experiencing as they seek to incorporate with traditional banking systems. It also highlights the necessity for the market to implement more robust and reliable banking solutions that can survive market drops. While it remains to be seen how the situation will play out, investors in the cryptocurrency market will be keeping a close eye on developments in the near future.
