Bitcoin tumbled Thursday to the lowest level since mid-January after Silvergate Capital Corp. said Wednesday it intended to wind down operations and voluntarily liquidate its subsidiary Silvergate Bank, a crypto-friendly lender.
The largest cryptocurrency
BTCUSD,
has fallen close to 9% Thursday towards $20,000, according to CoinDesk data. Ether
ETHUSD,
plunged close to 9% to about $1,420.
La Jolla, Calif.-based Silvergate
SI,
made the announcement after it said last week in a regulatory filing that it was at risk of “being less than well-capitalized,” and discontinued its crypto-payments network.
As one of the few crypto-friendly banks, the liquidation of Silvergate Bank points to uncertainty in the future relationships between crypto companies and banks, who play an essential role in the conversion of fiat currencies into crypto.
Silvergate Bank’s liquidation plan includes full repayment of all deposits, the company said Wednesday.
