To The Moon

Followed by the close of key crypto payments network last week, $Silvergate Capital(SI)$ announced Wednesday that it will phase out its Silvergate Bank business and voluntarily liquidate Silvergate Bank, whose shares were down 43.79 percent at $2.76 in after-hours trading. 1. Why is the liquidation of Silvergate so important for crypto? Who is Silvergate? Silvergate is one of two major crypto banking giants with $11 billion in assets. The bankrupt and infamous crypto exchange FTX was both a customer and a big supporter of Silvergate. The US lender is another victim of the digital-asset rout and the blowup of the FTX exchange. In a statement, the company said:- "In light of recent industry and regulatory developments, Silvergate believes that an orderly shutdown of its banking operations and voluntary liquidation of the bank is the best path forward." Under the liquidation plan announced Wednesday afternoon, all deposits will be repaid in full. $Coinbase Global, Inc.(COIN)$ and Galaxy Digital, $Marathon Digital Holdings Inc(MARA)$ and other cryptocurrency companies terminate partnerships with Silvergate after Silvergate warned that it was unsure of its ability to continue operations. 2. Bitcoin fell to a new low and may continue to dip Impacted by the collapse of crypto-friendly bank Silvergate Capital, Bitcoin fell to a three-week low -21,652.90. Bitcoin momentum gauge heads toward oversold level. Tony Sycamore, market analyst at IG Australia Pty, wrote in a note, Bitcoin may well “continue its correction” toward its 200-day moving average near $20,000 as long as the token stays below an area of resistance at $25,000. 3. Possible increased regulation on Bitcoin Silvergate's failure has made regulators more cautious. Silvergate has listed factors that could ultimately affect financial performance, including a DOJ investigation and increased regulatory scrutiny. Its impact in the crypto market, and a broader regulatory crackdown. Kara Murphy, chief investment officer at Kestra Investment Management, said, It’s hard to make a fundamental argument for crypto here, just given all the uncertainty — you don’t know what regulation is coming down the pike. What's your opinion towards crypto's movement? Does the close of the bank means narrower liquidity for crypto? Do you hold or plan to buy bitcoin? Leave your comments to win tiger coins~