Recently, Silvergate Bank announced the suspension of its exchange Silvergate Exchange Network (SEN). The decision to suspend this service is linked to financial risks. Many analysts wonder if this event has something to do with the attitude of bitcoin (BTC).
No direct links with the price of bitcoin (BTC)!
The recent decision of the Silvergate bank to suspend certain services relating to its SEN exchange still raises questions. Several players in the crypto industry are wondering if this decision has not contributed to the latest movements in the price of bitcoin (BTC). While speculation is all over the place, Hany Rashwan, CEO of 21.co, delivered his opinion on the subject. For him, one should not directly link the behavior of BTC to the problems that the SEN exchange is currently going through. This, even if it is not a factor to be excluded.
“We don’t see too much of a material impact on the price [du bitcoin, Ndlr]. I obviously concede that this is one of the many factors driving the price up at the moment,” Rashwan said Monday on CoinDesk’s First Mover show. Recall that since the beginning of the year, the BTC has climbed by more than 40%. In recent days, he has made a major pull-back. Some believe that this price pullback on the charts should continue, signaling the end of this uptrend.
If there is no established connection between these events, Rashwan suggests looking elsewhere for what has been moving bitcoin (BTC) since the start of the year. Perhaps, he questions, one should consider more global factors like the easing of anti-COVID-19 restrictions in China? Or more abstract elements like inflation, the threat of which still hangs like the sword of Damocles? Either way, there is no evidence as it stands to say that BTC will or will not be positively affected by SEN’s situation.
Although the Chinese economic context is clearly bullish for bitcoin (BTC), the boss nevertheless remains quite cautious. “I don’t think we’re out of the woods yet”did he declare.
Indeed, the Federal Reserve could review the interest rates charged on transactions. What to further plumb the performance of crypto companies such as Kraken, Gemini and Binance, big customers of Silvergate.
Receive a digest of news in the world of cryptocurrencies by subscribing to our new service of daily and weekly so you don’t miss any of the essential Tremplin.io!
