Bitcoin, ethereum unbothered by Silvergate drama, but crypto-related stocks take hit

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Bitcoin (BTC-USD) and ethereum (ETH-USD), the two largest cryptocurrencies by market cap, eked out small gains in Thursday mid-afternoon trading even as the Silvergate Capital (NYSE:SI) exodus takes it toll across crypto-exposed stocks.

Helped by a risk-on day across the stock market, bitcoin (BTC-USD) and ethereum (ETH-USD) both inched higher by 0.6% to $23.54K and $1.65K, respectively, as of 3:50 p.m. ET.

In the span of less than one day, Coinbase Global (NASDAQ:COIN), Galaxy Digital (OTCPK:BRPHF) Paxos Trust Company and Bitstamp all have ended their relationship with Silvergate Capital (SI), after the troubled crypto-friendly bank late Wednesday delayed filing its annual report and revealed doubts about its viability.

The latest blow to the crypto space "does not seem to have a huge impact on crypto prices," said Julius de Kempenaer, senior technical analyst at retail investor-focused financial charting platform StockCharts.com.

The major alt coins (anything but BTC) saw intraday declines of as much as 4%, "but that also does not count as panic selling in my book," he told Seeking Alpha in an emailed statement.

Overall, he concluded, "the crisis at Silvergate (SI) is nasty, another victim that could not handle the crypto boom. But the impact on the market seems limited for now. At the moment, regular financial institutions seem untouched by this new crypto failure and at this stage it seems unlikely that they would get hurt."

Most crypto-exposed stocks, though, traded in the red, chiefly Silvergate (SI) -57.1%, Coinbase (COIN) -1.4%, MicroStrategy (NASDAQ:MSTR) -1.7%, Bakkt (NYSE:BKKT) -2.8% and Marathon Digital (NASDAQ:MARA) -3.8%.

Earlier, crypto-focused ETFs slide amid Silvergate crash.

Comments

[Tall Seller]

Hope Ponzi $BTC and Ponzi pusher $MSTR go to $0.00/share when new legislation for crypto comes out, requiring all transactional enabling blockchains be backed 1-to-1 with USD,

[Investment Pancake]

4% down doesn't sound entirely "unbothered."

[automaticeye]

Charlie and Warren say it is all worth nothing... stay tuned.

[pat45]

wonder if Cathy Wood still buying SI or if dumping........

[mgbulat]

@pat45 she dumped it a few weeks ago and moved to coinbase

[Clearly you still haven't read Rothbard]

There is only one way to become wealthy in this space safely:

-bitcoin only, no shitcoins
-self custody, no custodians
-low time preference, no complaining about price action if you’ve held for less than 5 years

3 simple steps, but hard for most people to put into action, and extremely rewarding for those that do.

[warshack]

@Tom Honz yep, also Bitcoin will be around long after the USD is gone. And remember the USD has lost like 98% of it's value since 1970. Does that sound Ike something you want to hold?

[Tao Jaxx]

@warshack Time to debunk this BS argument typically touted by gold bugs of yore.
It is just based on accumulated inflation since 1970 (52 years ago...) @ 3.94% a year so $100 in 1970 had a purchasing power of $774.62 today. What that means is if you kept dollar BANKNOTES for 52 years, you would have lost 87% of purchasing power.
What king of 2-digit IQ idiot keeps banknotes as an investment?
By the way, On Nov. 10, 2021, Bitcoin reached an all-time high of $68,789. So BTC lost 65% of its value over the last 15 MONTHS. Does that sound Ike something you want to hold?

[grendelbane]

@Tao Jaxx “So BTC lost 65% of its value over the last 15 MONTHS. Does that sound like something you want to hold?

Does it sound like something you want to short? People short US$ all the time.

[grendelbane]

For some strange reason, that Queen song, “Another One Bites The Dust” keeps running through my head.