Crypto Banking-Gate continues to affect asset prices

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By Marija Matic

On Friday, Sam brought you the drama around the crypto-friendly Silvergate Bank. To bring you up to speed now, Silvergate has raised the possibility of it not surviving after the bank run that occurred after the collapse of FTX and the ongoing regulatory pressures.

In light of this, many high-profile crypto clients – including Coinbase (COIN), Crypto.com, and Paxos – have terminated their relationship with Silvergate.

Silvergate was one of the most important banks serving the crypto industry, so the exodus and search for alternative banking options had a domino effect. Indeed, the market has been in the red for a few days as a result.

However, these same regulatory concerns extend beyond Silvergate, making it increasingly difficult to find and maintain banking services. In light of this, many exchanges are looking for banking alternatives.

Perpetuals Exchange Bybit responded by announcing a temporary suspension of USD deposits via wire transfers – including SWIFT – due to “service outages” from their terminal processing partner. However, Bybit has not yet answered whether that partner was Silvergate.

However, users can still fund their purchases with credit cards and other payment methods.

Other exchanges are already looking for new reliable banking partners. Coinbase, for example, has partnered with Signature Bank to process payments.

Meanwhile, some exchanges like Kraken are even considering opening banks on their own.

It’s good to see these exchanges responding and adapting. However, until the smoke clears and the fight between crypto-friendly banks and increased regulatory scrutiny is resolved, there may be difficulties in integrating new USD, which may influence prices short. term.

After a steep drop last week, the crypto is now showing a mixed performance with more coins showing red than green:

Notable news, notes and tweets

And after

We are still in uncharted territory as concerns about Silvergate’s ability to continue operations prove justified and the search for new reliable banking partners continues.

Also, next Tuesday we will have the release of the Consumer Price Index, which will provide more macro clarity. For now, the February CPI print should be “warm” or above expectations.

Regardless of the outcome, a record 67% of Bitcoin’s supply hasn’t budged in at least a year, showing the stronger resolve of long-term holders to weather the bear market.

It looks like we’re not the only ones with a long-term bullish outlook. Hold on tight as these developments unfold and check back tomorrow for the latest updates.

Best,

Marija

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