California-based Silvergate tanks after warning on the ability to survive. On-chain data indicates strange whale activities
Cryptomarket traded in the red on Friday amid an anxious market mood. The global cryptocurrency market cap fell more than 2% to $1.06 trillion. Crypto major Bitcoin fell 4.68%, and Ethereum was down 5.02%.
The fall in the crypto market got a clue from the meltdown of shares of crypto-focused bank Silvergate. The shares had more than half their value on Thursday after the lender commented on its ability to survive. This led to a feeling of anxiousness among investors.
In a recent development, Silvergate reported that it failed to file its annual report with the Securities and Exchange Commission on time. In line with the event, the US-listed crypto exchange Coinbase stopped accepting or initiating payments to or from Silvergate.
Ethereum tanked more than 5% in the past 24 hours. As of writing, ETH/USD is reading at $1,565.
In addition, the On-chain analytical firm Lookonchain revealed a mysterious funds transfer of 312 million USD coins from Circle Internet Financial to exchanges in just the last eight hours.
According to the on-chain platform, a strange whale initiated a withdrawal of USDC from the circle and transfer to exchanges. During this period, the ETH price jumped 2% initially. But the rally soon fizzled out and the price fell toward $1,570.
Again, the whale withdrew 10 million USDC from Circle to exchanges in the last two hours. The step is taken to withdraw from “certain services” that involves Silvergate Capital as said by the Circle, the issuer of the USDC stablecoins.
