Investors and traders reacted to the recent statement by US Fed Chair Jerome Powell regarding potential interest rate hikes, resulting in sell-offs and increased concerns over aggressive interest rate policies. However, the decline in the crypto market may also be attributed to uncertainties surrounding Silvergate Bank broadly this week
During this week, the global cryptocurrency market experienced a decline as most digital assets saw a decrease in value due to various factors. Bitcoin, which began trading at the US$22,000 level on Monday, dropped to its lowest point since January 2021, reaching US$19,000. Similarly, Ethereum, the second-largest cryptocurrency, also experienced a drop, falling to the US$1,300 level. As a result, both of these cryptocurrencies experienced significant losses in their weekly gains.
However, following the release of the US jobs data on Friday, Bitcoin and other cryptocurrencies experienced a rebound, as the US added 311,000 jobs in February, surpassing predictions. Over the past 24 hours, both Bitcoin and Ethereum gained 3%.
Investors and traders reacted to the recent statement by US Fed Chair Jerome Powell regarding potential interest rate hikes, resulting in sell-offs and increased concerns over aggressive interest rate policies. However, the decline in the crypto market may also be attributed to uncertainties surrounding Silvergate Bank broadly this week.
In November, the bank faced significant withdrawals of $8.1 billion from investors following the FTX incident, leading to a chain reaction of negative consequences, including the sale of debt at a loss of $718 million. The bank’s latest financial report showed staggering losses of $1 billion for Q4 and $949 million for the entire year of 2022, in contrast to the $76 million profit recorded in 2021. The bank’s announcement of liquidation this week has also significantly impacted the crypto market.
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View Details »On the other hand, during early trading, the stock of Signature Bank (SBNY) experienced a decline of up to 30% due to the impact of Silvergate Bank’s collapse on the wider banking industry. Nevertheless, SBNY is recovering from this sudden drop in a volatile market, and now its decline has been reduced to 22%.
In an interesting turn of events, according to reports, Amazon is set to launch its own NFT marketplace next month. The marketplace will reportedly be accessible as a tab on Amazon’s main website, under the name “Amazon Digital Marketplace”.
Meanwhile, the highly anticipated Shanghai hard fork update for the Ethereum blockchain has been delayed by approximately two weeks. Originally slated for a late March launch, it is now expected to be implemented in early April.
The Ethereum network has recently introduced a new feature called account abstraction, which will assist users in recovering their cryptocurrencies in the event that they lose their wallet’s private keys. This is just one of several upgrades to the ETH network.
Regarding the price action, here is an overview of the best and worst-performing cryptocurrencies among the top 100 by market capitalization during the previous week:
Top 5 crypto gainers during the week:
1. Kava is up by 18%
2. Bone ShibaSwap is up by 8%
3. PAX Gold is up by 2%
4. UNUS SED LEO is up by 1%
5. KuCoin Token is up by 0.53%
Top 5 crypto losers this week:
1. Dash is down by 28%
2. SingularityNET is down by 27%
3. Stacks is down by 26%
4. Frax Share is down by 25%
5. Mina is down by 25%
(The author, Edul Patel, is CEO and Co-founder of Mudrex, a global crypto investing platform)
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
(Disclaimer: The opinions expressed in this column are that of the writer. The facts and opinions expressed here do not reflect the views of www.economictimes.com.)Sunday, 12 Mar, 2023Experience Your Economic Times Newspaper, The Digital Way!Read Complete Print Edition »
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