Cryptocurrency prices fell on Friday due to market rumors about Silvergate Capital's financial condition potentially leading to the bankruptcy of the crypto bank, if it happens it will have a wide impact on the crypto industry.
Several large crypto companies have decided to stop making payment transactions through Silvergate, some of these companies are Coinbase, Paxos, Bitstamp, etc
Silvergate, one of the main banks for cryptocurrencies, announced on Wednesday that it will not be able to meet the extended deadline for filing its annual report and may not be able to operate for the next 1 year.
As a result, the Silvergate company's shares fell by 57%. Quite a worrying drop for crypto investors around the world.
Bitcoin price had dropped by more than 4% while Ether price slipped to around 5% according to Coin Metrics.
In fact, since the beginning of 2023, the cryptocurrency market has rallied to near six-month highs but was hampered by the Silvergate Capital case.