Bitcoin Price Holds Steady Despite Silvergate’s Collapse

• Silvergate Capital stock falls by 58% amid FTX exchange collapse and regulatory inquiries.
• Bitcoin (BTC) price remains steady above $23,000 despite the news.
• Analyst Julius de Kempenaer views the lack of a negative catalyst as a positive.

Silvergate Capital Troubles

Bitcoin (BTC) wobbled a bit early Thursday as crypto-friendly bank Silvergate Capital (SI) shed more than 50% of its value on worries it may not survive, but turned upward in afternoon trading and is now higher by 0.4% over the past 24 hours at $23,500. California-based Silvergate said in a filing late Wednesday that ​​the impact of recent events – notably the FTX exchange collapse and subsequent regulatory inquiries – raised questions about the bank’s ability to “continue as a going concern.” The news led to at least two sell-side downgrades and a wide range of crypto firms pulling their business from the lender. Shares were down 58% shortly before the close of Thursday trade.

Bitcoin Price Holds Steady

Unlike, for instance, the FTX collapse in November, which sent bitcoin plunging to multi-year lows, the looming concerns on Silvergate had little effect on the world’s largest cryptocurrency by market value. The price of bitcoin on Thursday remained in the mid-$23,000 area. That the news around Silvergate has not been working as a negative catalyst “has to be seen as a positive,” said Julius de Kempenaer, senior technical analyst at

Positive Catalyst?

If they (crypto traders) really would be scared off and start selling then we probably would have seen Bitcoin below $20k again,” he added.”But instead we are seeing BTC stay relatively firm while altcoins are taking some heat.” Of course one day does not make or break any trend but it seems like there is still enough speculative demand out there to absorb bad news such as this one without too much damage being inflicted onto BTC’s price action.

Views From Analysts

“That it hasn’t been acting as a negative catalyst has to be seen as a positive,” said Alex Thorn of Galaxy Hear Alex Thorn share his take on “Bitcoin and Inflation: It’s Complicated” at Consensus 2023 Secure Your Seat event organizer Consensus 2023 . Other analysts suggested that while traditional banking institutions are dealing with their own set of challenges due to COVID-19 related restrictions, cryptocurrencies continue to prove resilient in light of potential risks such as those associated with Silvergate’s troubles.


In conclusion, despite initial worries about how Silvergates’ troubles could affect Bitcoin’s price action, BTC continues to remain relatively stable above $23K and even shows signs of growth amidst traditional banking institutions struggling with COVID-19 related restrictions . Analysts see this resilience in light of potential risks associated with Silvergates’ issuesabilityas having potentially positive implications for cryptocurrencies moving forward .