Bitcoin fails to claw back Fed-related losses as Silvergate bucks downtrend

Quick Take

  • Bitcoin dropped 4% to trade around $17,400. 
  • Crypto prices and equities continued a sharp sell-off that started on Wednesday following the Fed’s 50-basis point interest rate increase.

Crypto prices largely continued a slide that started with the Fed's 50-basis point interest rate increase yesterday. Crypto-related stocks were down, although Silvergate bucked the trend. 

Bitcoin slipped 4% to trade around $17,400 at 12:30 p.m. EST today, according to TradingView data. Ether is down 5% over the past 24 hours, trading at $1,271 – the majority of losses also followed the Fed news. Binance's BNB token has continued to trend lower today, dipping 3.5%. Dog-themed memecoins had a rough ride too, with dogecoin and shiba inu shedding 5.2% and 3.5%, respectively. 

 

BTCUSD chart by TradingView

Crypto stocks and structured products

U.S. stock indices were down across the board on Thursday. The S&P 500 fell 2.5%, while the Nasdaq 100 dropped by 3%.

Coinbase dropped 5.5% by 12:35 p.m. EST, according to Nasdaq data. Shares in the exchange are trading at an all-time low amid ongoing market turmoil and concerns over contagion from FTX's collapse. 

Jack Dorsey's Block fell 6.9% to trade around $66.30, and MicroStrategy plunged 5.7%.

Silvergate bucked the downward trend, adding 1.8% to trade at $19.06.

Grayscale's GBTC continues to trade at a discount of nearly 50% to its net asset value, with shares in the fund trading at a discount of 48.3% to the value of the bitcoin it holds, according to The Block's data. 

Concern over the liquidity of Grayscale's sister firm Genesis Capital persists. Although calls for the asset manager to liquidate some of its bitcoin fund have not materialized, one hedge fund has brought a legal case against the firm. 


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