As the Silvergate bank crisis deepened, the cryptocurrency market cap dropped by $51 billion.

Over the last 24 hours, the market capitalization fell by $50.62 billion to reach $1.17 trillion around 02:00 GMT on February 3rd.

A modest rally followed by a gradual rally, peaking at $1.285 trillion three hours later. But in the aftermath of the sell-off, market sentiment could fall further as Silvergate uncertainty takes hold.

total crypto market capitalization
sauce: CoinMarketCap.com

Crypto Market Weakness

Market leader Bitcoin dipped briefly below $22,000 to hit a 16-day low as the bears rioted.

Zooming in to a smaller timeframe, we found it quickly bounced off the support and closed with a top-heavy candle body. led to a reduction in

A further rejection in the $22,470 zone occurred at 09:00 GMT.

bitcoin 5 minute chart
sauce: BTCUSD on TradingView.com

Bitcoin traders reversed their majority shorts at 53%, leading to the lowest long/short ratio in a month. Similarly, Long has liquidated to $243.5 million in the last 24 hours, up 303% from the previous day.

bitcoin long and short
sauce: coinglass.com

Among the top 10 (excluding stablecoins), Litecoin dropped 8% over the past 24 hours, followed by Dogecoin, which dropped 6%. However, the biggest loser in the top 100 was dYdX, who fell 13.9% over the same period.

silver gate uncertainty

March 1st, silver gate said he would not meet the March 16 deadline for filing the 10-K report. An accompanying statement refers to unspecified events that contributed to the delay in filing.

“A number of circumstances have occurred that adversely affect the timing and unaudited results previously reported in the earnings call, including the sale of additional investment securities beyond what was previously anticipated…”

The announcement sent the stock price down nearly 50%. Analysts are sounding the alarm for the company as a going concern amid rumors that: FTX exposure exposure. some crypto companies It moved to cut ties with distressed banks, including Coinbase, Circle and Paxos.

Meanwhile, under preliminary investigation, FTX $8.9 billion A black hole in customer funds. The firm has identified $2.7 billion in customer funds, but the outstanding balance he said stands at $11.6 billion.

The company’s CEO, John Ray, echoed earlier comments about the incomplete record, adding that the numbers are subject to change.

By Jules

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