US crypto-industry loses banking access and Bitcoin had its worst week since FTX Collapse

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Last Updated on 6 November 2023 by CryptoTips.eu

Bitcoin finished its worst week since FTX’s fall last November amid fears that several US crypto companies will lose access to bank credit. A midsized US bank had to be rescued and taken over by the government in order to ensure customer deposits. Fear is growing in the market that other US banks could follow.

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Silvergate

Not only Silvergate bank made the news in a bad way this week. SVB Financial (which stands for Silicon Valley Bank), which mainly provided loans to Silicon Valley tech companies and startups, also saw its value suddenly decrease on Thursday when it had to announce that it was urgently looking for 2 billion. Investors sold the SVB shares which fell rapidly. By Friday SVB became the first bank the government had to take over since the financial crisis of 2008.

These two stories made sure that our March 7 prediction, namely that a possible bankruptcy of Silvergate could become a very big problem for the US crypto industry, is gaining traction.

Matt Hougan, chief investment officer at Bitwise Asset Management, said on MarketWatch yesterday that the Silvergate woes point to “the biggest threat” for the crypto industry in the U.S.

The global banking system is going to find a way to have crypto as a customer. I suspect we will find a way in the US for the more regulated parts of the crypto industry to have more stable traditional banking relationships.

Noted Hougan.

Worst week since FTX

The world’s biggest crypto coin, Bitcoin, lost some 10% this week. That is its biggest loss since a 23% weekly tumble in November amid the collapse of Sam Bankman-Fried’s FTX crypto-platform.

The token will likely trade in the lower end of a range from about $15,500 to $25,000, said Tony Sycamore, market analyst at IG Australia.

“Risk sentiment has really deteriorated this week,” he added.

Jeroen Kok

Jeroen is one of the lead copywriters on Cryptotips.eu and discusses all recent events in the crypto market. This includes news updates, but also price analyzes and more. He developed his passion for cryptocurrency during the bull run in 2017. He has learned a lot since then. The combination of cryptocurrency and creative writing is perfect for Jeroen and an excellent way to share his knowledge with a wide audience. Find me on LinkedIn / [email protected]
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