[Bitcoin Now] Silvergate Crisis Pushes Price to $22,000 Range... Investor Sentiment 'Neutral'

The price of Bitcoin fell to the $22,000 range due to concerns over a bank run at Silvergate Capital, a U.S. bank specializing in virtual asset transactions.

According to CoinMarketCap, a global virtual asset market tracking site, as of 1:48 PM on the 5th, the price of Bitcoin was recorded at $22,457 (approximately 29.22 million KRW), down 0.45% from the previous day.

Image source=Reuters·Yonhap News

Until the 3rd, the price of Bitcoin had been hovering in the $23,000 range. However, following the impact of the Silvergate Capital incident, it plunged more than $1,000 within about an hour. Silvergate Capital failed to submit its annual business report, which must be filed with securities regulators, by the deadline and postponed the submission. Additionally, it is reported to have suffered losses amounting to approximately $1 billion last year due to the bankruptcy of the global virtual asset exchange FTX.

As a result, some credit rating agencies downgraded their ratings, and some virtual asset companies ceased transactions with Silvergate Capital. However, since there was no further decline after the sharp drop in Bitcoin prices on the 3rd, some argue that the impact of this incident is limited.

Meanwhile, virtual asset investor sentiment remained at a neutral level. According to Alternative, a virtual asset data provider, the Fear & Greed Index, which expresses investor sentiment as an index, dropped 3 points from the previous day to 47 points (neutral) on this day. Compared to 51 points (neutral) a week ago on the 26th, it fell by 4 points. Alternative's Fear & Greed Index means that a score closer to 0 indicates extreme fear and pessimism about investing, while a score near 100 indicates optimism.