Bitcoin offices in Istanbul, Turkey seen on May 11, 2022. . In parallel with the global stock market, which has been hit by the Fed's 50 basis point policy rate hike, it sold $1 billion worth of cryptocurrency to keep the TerraUSD (UST) stablecoin at $1. UST, which rose to $0.95 yesterday, fell again today to $0.36. The daily loss of LUNA, the cryptocurrency of the Terra network, reached 97 percent. Bitcoin also fell to 29,039.54, its lowest level since January. (Photo by Umit Turhan Coskun/NurPhoto via Getty Images)
NurPhoto via Getty Images
The value of digital currencies fell below $1 trillion on Thursday, following the move by crypto-focused Silvergate Capital.
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Crypto's market value was $940.7 billion at 4 p.m. in New York, according to CoinMarketCap and $973.7 billion for CoinGecko account, representing losses of about 7% since Wednesday night. The market, which hit $1.1 trillion last month, approached $3 trillion in fall 2021.
Bitcoin
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On Wall Street, the Bitwise Crypto Industry Innovators ETF it slid 7.8%.
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Silvergate, which remains listed after announcing that it would chill out his business, fell to $2.80, 42% below its close on Wednesday. News of its planned liquidation came after trading ended yesterday.
Signature Bank fell 12% to $90.76. The lender has a shrinking cryptocurrency business and tried to distance itself from the industry.
“As a reminder, Signature Bank does not invest, trade, hold, custodial, and lend or lend collateralized by digital assets,” CEO and co-founder Joseph DePaolo said in a statement. statement.
The statement added that 80% of Signature's deposits come from "middle-market companies, such as law firms, accounting practices, healthcare companies, manufacturing companies, and real estate management companies."
Only $16.5 billion of its $89.17 billion of deposits are from clients related to digital assets, it said, pointing to a dividend increase announced in January and share buybacks this week as evidence of its financial health.
Signature's move away from cryptocurrencies along with the withdrawal from Silvergate reduce the industry's bridges to traditional financial services and could hamper the growth of digital assets.
Silvergate shut down its Silvergate Exchange Network last week, a key element in its attempt to provide a bridge between traditional banking services and the digital asset industry. Without the service and following a Exodus of large clients, it was unclear which market the Silvergate Bank operation could serve.
Earlier, a run on deposits as pressure mounted on the crypto industry after the FTX crash last year led Silvergate to borrow $4.3 billion from the Federal Home Loan Bank of San Francisco, ultimately raising objections at the Capitol.
