Litecoin, dogecoin lead declines in crypto prices, Silvergate plummets pre-market
Quick Take
- Bitcoin traded lower to $17,006, ether slipped more than 2% to $1,259.
- Shares in Silvergate plummeted over 11% in pre-market trading, despite attempted reassurances made by the bank on Monday.
- Coinbase, Block, and MicroStrategy were more muted in comparison.
Altcoins led the drop in crypto markets as bitcoin and ether also slid. Silvergate sank over 11% in pre-market trading despite the CEO's efforts to reassure the market.
Bitcoin slipped 1.6% over the past day to $17,006 at 8:40 a.m. EST, according to TradingView. Ether traded even lower, dropping 2.6% to $1,259.
Binance's BNB token and Ripple's XRP both fell 2.2%, while Litecoin's LTC — which bucked the downward trend for much of Monday — dropped 5.2%.
The U.S. dollar has perked up over the past day, buoyed by better-than-expected jobs data last week. The U.S. added 263,000 jobs in November, above estimates of 200,000. U.S. ISM non-manufacturing PMI for November also came in above expectations at 56.5 vs 53.3 expected and 54.4 last month. Anything above 50 is considered expansionary, said Noelle Acheson, former head of market insights at Genesis, in her daily newsletter today.
Expansionary economic indicators could dash hopes of the Fed slowing the pace of interest rate hikes.
The DXY lifted off three-month lows to trade at 105.10 today. Bitcoin tends to drop when the U.S. dollar strengthens.
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U.S. indices were marginally higher today as the S&P 500 and Nasdaq 100 futures gained 0.1% and 0.2%.
Silvergate shares plummeted before the open today, down 11.5% to $21.44 by 8:45 a.m. EST. Shares in the La Jolla-based crypto bank have been trending downward over the past few weeks after the bank revealed exposure to FTX and BlockFi.
CEO Alan Lane attempted to reassure investors and customers that the bank's assets are safe and that the company complies with due diligence and anti-money laundering laws.
"Silvergate conducted significant due diligence on FTX and its related entities, including Alameda Research, both during the onboarding process and through ongoing monitoring, in accordance with our risk management policies and procedures and the requirements outlined above," Lane said on Monday.
Lane's efforts appear to have done little to arrest investor fears as the stock is sinking to its lowest level this year.
Elsewhere, Coinbase was up 0.1% to $46.04, while MicroStrategy was unchanged.
Block dropped marginally before the open on the East Coast, down 0.4%.
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