The US bank Silvergate Capital is set to default during this cycle, marking the first commercial bank in the US under the supervision of the Fed and other controlling bodies to do so. Talks with the FDIC failed to secure a salvage plan, and the bank is now set to liquidate its assets and close its business.
This news has sent shockwaves through the crypto market, as Silvergate Capital is a key player in the industry, with many crypto brokers and exchanges relying on the bank for their operations. The uncertainty surrounding the bank’s closure has resulted in a flow and stream of funds from one crypto broker to another, making the market more uncertain.
UNI Gears up for Another Leg Lower
The impact of Silvergate Capital’s implosion is already being felt, with UNI bracing for another leg lower. UNI is the governance token of Uniswap, a decentralized exchange that enables users to trade cryptocurrencies without intermediaries.
UNI’s price is set to tank at least 5%, with support nearby at $5.90, marked by the monthly S1 and the green ascending trend line. However, once bears breach below the green ascending trend line, UNI is expected to experience a sharp nosedive towards $5.20. This will occur when another domino falls in the aftermath of Silvergate’s unwinding.
Conclusion
In conclusion, Silvergate Capital’s implosion has caused uncertainty in the crypto market, with many crypto brokers and exchanges looking for new banking partners. This uncertainty has resulted in a flow and stream of funds from one crypto broker to another, making the market more uncertain.
UNI is gearing up for another leg lower, with support at $5.90 and a possible nosedive towards $5.20 when the green ascending trend line is breached. Investors should be cautious and keep an eye on the situation, as further developments could impact the crypto market as a whole.
