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- 1 Silvergate stock fell 60% weekly, as the Bank faced severe losses and numerous regulatory issues after the Sam Bankman Fried’s (SBF) empire collapsed.
- 2 Silvergate Bank (NYSE: SI) is pulling down Bitcoin (BTC) prices and increasing fear in all over cryptocurrency market
- 3 Crypto Bank Silvergate Shares eroded billions and might not able to survive this year
Silvergate Capital (NYSE: SI) Stock price had witnessed a massive gap down in the regular trading session and broken down the 52 week low after company delayed the filing of Annual report 2022 which clearly shows that something big is hidden from the public and if it come out then it might shake the crypto market as well as the financial market. Previously, Silvergate customers withdrew over $8 billion deposits from Silvergate after FTX collapsed. The withdrawal contributed to Silvergate nearly $1 billion losses in the December quarter of 2022 and now if more withdrawals are placed then surely it will be difficult for the crypto bank to survive.
If the Silvergate crypto bank collapses, the Federal Deposit Insurance Commission (FDIC) might overtake the bank in order to protect depositors, liquidate assets and facilitate dissolution.
Silvergate Bank investors’ money are at huge risk?
Silvergate stock prices have tried to form a base near $10.00 in the month of January, which has created a hope of for the long term investors but the upside rally faced rejection at the 50 day EMA and Silvergate prices again took the downside reversal. It seems like the previous short term rally is just a trap created for the bulls and smart money wanted to exit at higher levels.
Silvergate Shares had also seen huge selling volume and the technical chart structure is also turning highly bearish indicating that the possibility of recovery is very low but we must also keep in mind that Silvergate (NYSE: SI) stock prices are near to the oversold levels and might trigger short squeeze in coming weeks. The MACD has generated a negative crossover denotes bearishness whereas the RSI at 29 denotes highly oversold.
Summary
Silvergate Stock (NYSE: SI) prices had collapsed on 2 March 2023 when a publicly traded company delayed to file its Annual report 2022 in order to evaluate internal control over financial reporting. Moreover, Coinbase has also announced it was unwinding its relationship with Silvergate which could impact its services and would no longer use Silvergate to process deposits and withdrawals. All of these issues are pointing that Silvergate is in crisis and might go for bankruptcy.
Technical levels
Resistance levels : $10.00 and $14.00
Support levels : $5.00 and $3.00
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only, and they do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
