David - Cryptocurrency Specialist
The Ascending Channel Support Level Breaks as Silvergate Bank Crisis Takes Hold
FTX's Bankruptcy and Massive Shortfall Lead to $8.6 Billion Deficit
EOS, IMX, and DYDX Performances in the Crypto Market Investment
Balanced Leverage Demand Despite Recent Price Correction
Options Put/Call Ratio Reflects Traders' Optimism
The total crypto market capitalization experienced a sharp sell-off on March 2, slipping below $1.025 trillion due to concerns over the solvency of Silvergate Bank, a major player in crypto on- and off-ramping. The bank's announcement of "additional losses" and suboptimal capitalization potentially triggered a bank run, leading clients to seek alternative solutions or sell their positions to reduce exposure in the crypto sector.
The ascending channel support level initiated in mid-January saw its $1.025-trillion market cap floor ruptured after Silvergate Bank's stock plunged by 57.7% at the New York Stock Exchange on March 2. This led to a 6.3% price correction, breaking below the ascending channel support level.
Moreover, FTX, a bankrupt cryptocurrency exchange, revealed a "massive shortfall" in its crypto assets and fiat currency holdings, leading to a $8.6 billion deficit across all wallets and accounts, while FTX US recorded a deficit of $116 million. This also contributed to the 4% weekly decline in total market capitalization since Feb. 24, which was driven by the 4.5% loss from trusted Bitcoin and Ether's 4.8% price decline.
Despite the recent price correction, the leverage demand remains balanced, with perpetual futures contracts reflecting a slightly higher demand for betting against BNB's price at 0.2% per week. Meanwhile, the options put/call ratio reflects traders' optimism, with the demand for bullish call options exceeding the neutral-to-bearish puts since Feb. 25.
In terms of individual cryptocurrency performances, EOS gained 9% after the EOS Network Foundation announced the final testnet for the Ethereum Virtual Machine launch on March 27. Immutable X (IMX) also traded up 5% as the project became a "Unity Verified Solution," allowing seamless integration with the Unity SDK. However, DYdX (DYDX) traded down 14.5% as investors await a $17-million token unlock on March 14.
From a derivatives market perspective, the market showed resilience, and crypto traders may not expect additional corrections despite the bearish indicator from the failed ascending channel. The 4% weekly decline in total market capitalization reflects the uncertainty brought by Silvergate Bank, and it is unlikely to have roots deep enough to cause systemic risk.
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Dear valued BC Bitcoin UK Clients,
I hope this email finds you well. We are reaching out to inform you of some significant changes to our services that directly impact our operations within the United Kingdom. Regrettably, due to the recent regulatory developments introduced by the Financial Conduct Authority (FCA) and the implementation of the new Financial Promotions Regime, BC Bitcoin is no longer able to offer our services to clients based in the UK. This very difficult decision is in compliance with the regulatory framework and ensures that we uphold the highest standards of transparency and legality. You can view the FCA publication here: https://www.fca.org.uk/publication/finalised-guidance/fg23-3.pdf As a result, we would like to inform you of the following changes and provide guidance on how to manage your assets with BC Bitcoin:
1. **Service Termination for UK Clients:**
BC Bitcoin will no longer be able to accept new purchase orders from clients residing in the United Kingdom.2. **Continued Operation Outside the UK:**
Despite the changes within the UK, BC Bitcoin will continue to operate outside of the UK as normal. Our services will remain unaffected for clients in other regions.3. **Withdrawal of Assets:**
For our UK clients holding assets with BC Bitcoin, we want to assure you that your assets are secure. You have the option to safely withdraw your assets or exchange them to GBP or EUR and subsequently withdraw. We have streamlined the withdrawal process to ensure convenience for our clients.4. **Conversion of Assets:**
To convert your Holdings to fiat please log in to your BC Bitcoin account and submit a sell order for the amount of coin you hold with us. During the process you will shown how much you will receive and asked the bank details you wish to receive payment to. In addition, you can request the conversion by emailing info@bcbitcoin.com from your registered email address. If you encounter any issues or require assistance, our customer support team is ready to help you throughout the process.5. **Withdrawal Procedure:**
To initiate a withdrawal, please email your request to info@bcbitcoin.com from your registered email address. You may be asked some security questions to verify your identity. If you encounter any issues or require assistance, our customer support team is ready to help you throughout the process. These changes are effective immediately, and we appreciate your understanding and cooperation during this transitional period. We understand that this may be an inconvenience for our UK clients, and we sincerely apologise for any disruption this may cause. Thank you for being a valued part of the BC Bitcoin community. We are committed to providing you with a seamless experience as we navigate through these regulatory changes. If you have any questions or concerns, please do not hesitate to reach out to our customer support team at info@bcbitcoin.com Kind Regards