[Bitcoin Now] Silvergate Crisis Causes 7% Plunge... Investor Sentiment 'Fear'

The price of Bitcoin plunged more than 7% as Silvergate, a bank related to virtual assets, decided to liquidate.

Image source=Reuters·Yonhap News

According to CoinMarketCap, a global virtual asset market data relay site, as of 9:25 a.m. on the 10th, the price of Bitcoin was recorded at $20,147 (approximately 26.65 million KRW), down 7.28% from the previous day. This marks the first time since January this year that it has fallen to the $20,000 range.

The price of Bitcoin dropped sharply following Silvergate, a U.S.-based virtual asset specialized bank, deciding to liquidate. Silvergate stated, "Considering the recent virtual asset industry and regulatory environment, we have concluded that ceasing bank operations and voluntarily liquidating is the best course of action."

Earlier, on the 5th, concerns about a bank run (a situation where customers withdraw funds all at once) at Silvergate caused the price of Bitcoin to fall by more than $1,000 in a single day.

Additionally, ongoing concerns about tightening monetary policy are also dragging down Bitcoin prices. The U.S. stock market, which shows a synchronization phenomenon, also closed lower. The tech-heavy Nasdaq index closed down 237.65 points (2.05%) at 11,338.35. The Dow Jones Industrial Average fell 543.54 points (1.66%) to 32,254.86, and the large-cap S&P 500 index ended trading down 73.69 points (1.85%) at 3,918.32.

Meanwhile, investor sentiment in virtual assets has deteriorated to a fear level. According to Alternative, a virtual asset data provider, the Fear & Greed Index, which indicates investor sentiment as an index, dropped 10 points from the previous day to 34 points (fear) on this day. Alternative's Fear & Greed Index means that the closer the score is to 0, the more extreme the fear and pessimism about investing, while a score near 100 indicates optimism.