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Bitcoin (BTC-USD) and Ethereum (ETH-USD), the two largest cryptocurrencies by market cap, posted small gains in Thursday afternoon’s trading, despite Silvergate Capital (NYSE:SI) Exodus lasts it hits crypto-exposed stocks.
Both bitcoin (BTC-USD) and ethereum (ETH-USD) rallied slowly, helped by a risky day in stock markets 0.6% to $23.54,000 and $1.65,000 respectively as of 3:50 p.m. ET.
In less than a day, Coinbase Global (NASDAQ: COIN), Galaxy Digital (OTCPK:BRPHF), Paxos Trust Company and Bitstamp have all ended their relationships with Silvergate Capital (SI) after the ailing crypto-friendly bank delayed filing its annual report late Wednesday and raised doubts about its viability.
The recent blow to the crypto space “doesn’t appear to be having a major impact on crypto prices,” said Julius de Kempenaer, senior technical analyst at retail-focused financial charting platform StockCharts.com.
Major altcoins (everything but BTC) are down as much as 4% daily, “but that doesn’t count as panic selling in my book either,” he told Seeking Alpha in an emailed statement.
Overall, he concluded: “The crisis at Silvergate (SI) is bad, another casualty that has failed to handle the crypto boom. But the impact on the market appears to be limited for now. For now, regular financial institutions seem unaffected by this new crypto failure and at this stage it seems unlikely that they will be hurt.”
However, most crypto-exposed stocks traded lower, mainly Silvergate (SI) -57.1%Coin base (COIN) -1.4%MicroStrategy (NASDAQ:MSTR) -1.7%Bakkt (NYSE:BKKT) -2.8% and Marathon Digital (NASDAQ: MARA) -3.8%.
Previous crypto-focused ETFs slide amid Silvergate crash.
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