More than $70 billion is wiped off crypto market in 24 hours as bitcoin drops 8% trends now
Bitcoin briefly dropped as much as 8% on Friday, dipping back below $20,000 to near a two-month low, following turmoil from the collapse of Silvergate Bank earlier this week.
The volatility wiped more than $70 billion off the collective valuation of the cryptocurrency market in less than 24 hours, according to CNBC.
Silvergate, which was a key banking partner for crypto businesses, on Wednesday announced plans to voluntarily liquidate, as the aftermath of FTX's implosion last year reverberates through the industry.
The California-based company had been hit by investors rushing to withdraw around $8 billion of deposits after the sudden bankruptcy of FTX last year.
In a stunning turn of events, the collapse of Silvergate was eclipsed by the failure of Silicon Valley Bank, which was seized by federal regulators on Friday after a similar run on deposits.
Bitcoin has plunged this week following the failure of crypto lender Silvergate
Alan Lane, CEO of Silvergate Bank, is seen above. Silvergate, which was a key banking partner for crypto businesses, on Wednesday announced plans to voluntarily liquidate
Silicon Valley Bank was much larger than Silvergate, with $207 billion in assets and $175.4 billion in total deposits, compared to the crypto bank's $3.8 billion in deposits at the end of last year.
SVB's failure also had some implications for the crypto market, as its client base of tech startups included some working in the crypto sector.
The dire outcome for California-based Silvergate, one of the crypto industry's favored banks,