Bitcoin drops in wake of Silvergate crisis
STORY: Cryptocurrency prices plummeted on Friday, with Bitcoin dropping to its lowest level in more than two weeks.
The plunge came a day after the emergence of another crypto crisis – this time involving Silvergate Capital, one of the most influential banks in the digital asset industry.
Silvergate was dropped as the banking partner of several crypto companies - including heavyweights Coinbase Global and Galaxy Digital - after the lender’s latest filing raised questions about its ability to stay in business.
The move sunk Silvergate’s shares Thursday to a record low of $5.72, down more than 97% from the stock's all-time high in November of 2021.
The company’s woes come in the wake of the implosion of crypto exchange FTX and sister company Alameda Research, both founded by onetime crypto wunderkind Sam Bankman-Fried, who is now facing criminal charges.
Bitcoin on Friday plunged as much as 5%, while shares of Ether and crypto exchange Binance were also down.