{"id":1680,"date":"2023-03-08T14:45:17","date_gmt":"2023-03-08T14:45:17","guid":{"rendered":"https:\/\/solanacrypto.news\/2023\/03\/08\/bitcoin-ethereum-solana-and-shiba-inu-drop-major-reasons-for-growing-fear-in-crypto-2\/"},"modified":"2023-03-08T14:45:17","modified_gmt":"2023-03-08T14:45:17","slug":"bitcoin-ethereum-solana-and-shiba-inu-drop-major-reasons-for-growing-fear-in-crypto-2","status":"publish","type":"post","link":"https:\/\/solanacrypto.news\/2023\/03\/08\/bitcoin-ethereum-solana-and-shiba-inu-drop-major-reasons-for-growing-fear-in-crypto-2\/","title":{"rendered":"Bitcoin, Ethereum, Solana And Shiba Inu Drop: Major Reasons For Growing Fear In Crypto"},"content":{"rendered":"
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While cryptocurrencies are\u00a0no stranger to sudden market movements and volatility, the latest market shake-up has left many in the industry reeling.<\/p>\n

A large red bar appeared on trading charts of major cryptocurrencies on Friday, with their values plummeting by hundreds of millions of dollars within hours.<\/p>\n

In the last week, Bitcoin<\/strong>‘s BTC\/USD<\/span> price dropped by 4.8%, while Ethereum\u00a0<\/strong>ETH\/USD<\/span> saw a decline of 3.9%.<\/p>\n

Altcoins also had a poor performance in the last week, with Cardano<\/strong> ADA\/USD<\/span> and Solana<\/strong> SOL\/USD<\/span> dropping by 6.3% and 8.3%, respectively. Shiba Inu<\/strong>\u00a0SHIB\/USD<\/span> and Dogecoin <\/strong>DOGE\/USD<\/span>, two popular memecoins, also suffered losses, falling by 9.9% and 5.5%, respectively.<\/p>\n

Here are the major reasons behind this latest market downturn:<\/p>\n

Uncertainty Around Silvergate Bank<\/strong>: One of the key reasons behind the sudden drop in cryptocurrency prices was the uncertainty surrounding Silvergate Bank <\/strong>SI<\/span>, a California-based crypto-bank that plays a vital role in providing market liquidity.<\/p>\n

Shares of Silvergate Bank fell by a staggering 58% during trading in the U.S. on Thursday and continued their downward spiral on Friday.<\/p>\n

The bank allows cryptocurrency exchanges and other customers to exchange cryptocurrency for fiat money, and its fall has sparked concerns over the stability of the cryptocurrency market.<\/p>\n

Coinbase Dumps Silvergate<\/strong>: Another factor contributing to the market downturn was Coinbase<\/strong>‘s COIN<\/span> decision to suspend payments to Silvergate.<\/p>\n

Coinbase, one of the largest cryptocurrency exchanges in the world, cited “technical issues” as the reason behind the suspension.<\/p>\n

Still, the move has fueled concerns over the safety and security of cryptocurrency exchanges<\/a>.<\/p>\n

Gemini, Crypto.com, Bitstamp, and MicroStrategy <\/strong>MSTR<\/span> wash hands off Silvergate:<\/strong> On March 2, multiple cryptocurrency companies announced temporary halts on accepting deposits made via Silvergate Bank.<\/p>\n

This further exacerbated concerns over the bank’s stability and the safety of cryptocurrency exchanges.<\/p>\n

Also read:\u00a0Is Silvergate’s Fall Certain? Industry Experts React To Cryptocurrency Bank’s Problems<\/a><\/em><\/p>\n

SEC Chair Gensler Says Crypto Exchanges May Not Be Qualified Custodians:<\/strong> At a recent Investor Advisory Committee meeting, SEC Chair Gary Gensler<\/strong> expressed skepticism about the idea of crypto exchanges serving as qualified custodians for investment advisers.<\/p>\n

He acknowledged <\/a>that a proposed rule directing advisers to use qualified custodians for asset storage, including cryptocurrencies, would improve existing protections.<\/p>\n

This has once again raised questions about the regulation and oversight of cryptocurrency exchanges and has contributed to the market’s instability.<\/p>\n

Wallets linked To FTX.com And FTX.US Exchanges Facing A Significant $2.2 billion Asset Shortfall:<\/strong> The news that FTX Trading Ltd.<\/strong> FTT\/USD<\/span> and its affiliated debtors have reported significant shortfalls in fiat bank accounts and digital asset wallets associated with the FTX.com and FTX.US exchanges, totaling $2.2 billion.<\/p>\n

The company shared a presentation with the Official Committee of Unsecured Creditors and announced that it will be filed on the docket in the Chapter 11 cases<\/a>.<\/p>\n

This has added to the overall sense of instability and uncertainty in the market.<\/p>\n

Now Read:\u00a0Much Wow! If You Invested $100 When Elon Musk First Tweeted About Dogecoin, Here’s How Much You’d Have Now<\/a><\/em><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

While cryptocurrencies are\u00a0no stranger to sudden market movements and volatility, the latest market shake-up has left many in the industry reeling. A large red bar appeared on trading charts of major cryptocurrencies on Friday, with their values plummeting by hundreds of millions of dollars within hours. In the last week, Bitcoin‘s BTC\/USD price dropped by […]<\/p>\n","protected":false},"author":1,"featured_media":1681,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rank_math_lock_modified_date":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-1680","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/solanacrypto.news\/wp-json\/wp\/v2\/posts\/1680","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/solanacrypto.news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/solanacrypto.news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/solanacrypto.news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/solanacrypto.news\/wp-json\/wp\/v2\/comments?post=1680"}],"version-history":[{"count":0,"href":"https:\/\/solanacrypto.news\/wp-json\/wp\/v2\/posts\/1680\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/solanacrypto.news\/wp-json\/wp\/v2\/media\/1681"}],"wp:attachment":[{"href":"https:\/\/solanacrypto.news\/wp-json\/wp\/v2\/media?parent=1680"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/solanacrypto.news\/wp-json\/wp\/v2\/categories?post=1680"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/solanacrypto.news\/wp-json\/wp\/v2\/tags?post=1680"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}