Bitcoin and Ethereum funds see major outflows and crypto cleanup continues with Silvergate: what happened this week

Has crypto turned a new leaf after being stuck in a bearish price range?

Spoiler alert: it didn’t — at least not this week.

In fact, Bitcoin, Ethereum, and the broader crypto market have been hit hard after some crypto firms exited longtime banking partner Silvergate Capital, adding to concerns that the industry cleanup isn’t over yet.

Price-wise, according to CoinDesk, Bitcoin is poised to end the week around $22,335, down 4.4% from where it was 24 hours earlier. Ether also struggled at around $1,566, down almost 4%.

Earlier this week, a number of crypto companies severed ties with Silvergate, which was exposed to the collapsed crypto exchange FTX. It appears the restructuring is continuing – there will be more shoes dropped, more contagion victims, more customers learning their money is lost.

Former FTX Trading Ltd. co-lead engineer Nishad Singh followed Samuel Bankman-Fried into the cryptocurrency world and finally this week pleaded guilty to referral fraud and other charges.

Here’s a look at the news making headlines in the volatile world of crypto:

March 03, 2023

Silvergate Capital Corp, one of the most cryptocurrency-friendly financial institutions in the US, continues to plummet on the New York Stock Exchange, causing other high-profile crypto-related firms to distance themselves from the struggling firm.

Silvergate’s market valuation has now fallen over 60% since the bank told US regulators on Wednesday that it was “unable to file its full-year earnings report as expected” even after receiving an extension to the 16th in the group.

March 03, 2023

All the talk of Bitcoin’s historically low volatility was lost this morning after the benchmark crypto asset saw markets take a sharp tumble in the early hours of Friday, with almost 5% wiped out from the BTC/USDT pair.

Pretty much all of that $1,500 fell in a single hourly time frame between midnight and 1am UK time.

March 02, 2023

Bitcoin (BTC) remains stubbornly flat for the second half of the week after staying squarely in the 23,000-24,000 range for five days.

Low volumes keep volatility at historic lows, hovering around 60% year-on-year.

March 02, 2023

Silvergate Capital Corp, one of the most cryptocurrency-friendly banks in the U.S., has delayed its annual earnings call and may not be able to meet extended deadlines due to ongoing investigations and internal reviews, the company announced on Wednesday.

In a filing with the Securities and Exchange Commission, the California-based company said it was “unable” to file its annual earnings report as expected, even after receiving a March 16 deadline extension.

March 01, 2023

Grayscale Bitcoin Trust is preparing for its latest legal challenge from the US Securities and Exchange Commission, which has long refused to allow the world’s largest Bitcoin investment vehicle to trade on the US stock market.

The struggling investment trust has been trying to go public as a spot ETF for years, but under chairman Gary Gensler, the SEC has firmly blocked Grayscale’s attempts at every step.

March 01, 2023

Former FTX engineer Nishad Singh is the third top executive at Sam Bankman-Fried’s collapsed cryptocurrency exchange to plead guilty to fraud charges after similar admissions were made by Caroline Ellison and Gary Wang in recent months.

Singh has been accused of developing the “backdoor” protocol that allowed Bankman-Fried’s hedge fund Alameda Research to access billions of dollars in user funds held on FTX.

March 01, 2023

Technically, Bitcoin (BTC) ended February up 0.069%, although the story would have been very different were it not for that 9.5% one-day rally on Feb. 15 in response to the US tech stock pump.

There was little hope of repeating January’s runaway performance, mainly due to renewed strength in the US dollar on stubborn inflation and fading hopes of a continued risk rally.

February 28, 2023

Goldman Sachs (NYSE:GS) Group Inc could embark on a hiring drive in its growing business just a month after Goldman laid off about 3,200 employees after being outmaneuvered by rival investment bank Morgan Stanley (NYSE:MS) last earnings season Prepare blockchain division.

Head of Digital Assets Mathew McDermott said in a recent interview that his department would hire “as needed.”

February 28, 2023

It was destined to be a slightly quieter week on the Bitcoin (BTC) volatility front, and it appears to be…until now.

In fact, the Bitcoin Volatility Index is below 60 points, its lowest level in 12 months.

February 28, 2023

Robinhood Markets Inc (NASDAQ:HOOD) received a subpoena from the US Securities and Exchange Commission (SEC) in December 2022 related to the listing and custody of cryptocurrencies at its subsidiary Robinhood Crypto, the hybrid trading platform announced.

The investigation is part of a major foray into the cryptocurrency sector by the US Securities and Exchange Commission after a year of unprecedented turmoil that has seen former crypto titans FTX, Terraform Labs, Three Arrows Capital and many more collapse.

February 27, 2023

Bitcoin managed to break its five-day losing streak with a green candle to cap off the weekend.

BTC/USDT is up 1.7% on Sunday to take the pair to $23,550 despite a dip below $23,400 this morning.

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