Leading crypto-friendly bank Silvergate now appears to have gone completely bankrupt after issuing a series of loans in 2022 that could not be honored.

There is speculation that the bank could be taken into receivership and concerns about what this may mean for the crypto industry moving forward.

Silvergate Could be Completely Bankrupt

Silvergate was one of the first banks to enter the crypto industry in a larger way and has struggled after a disastrous 2022, with the exchange now functionally insolvent.

Coinbase has already redirected many of its clients from using Silvergate to banking alternatives and many other large companies in the industry are expected to follow suit.

Companies are already scrambling to explain how little exposure they have to Silvergate.

MicroStrategy, for example, has already signaled that they keep custody of all of their Bitcoin that they used to acquire the loan from Silvergate, and cannot be affected by the bank’s implosion.

A statement on Twitter read:

“We have a loan from Silvergate not due until Q1 ‘25. There are mkt concerns re SI’s fin. condition. For anyone wondering, the loan wouldn’t accelerate b/c of SI insolvency or bankruptcy. Our BTC collateral isn’t custodied w/ SI & we have no other financial relationship w/ SI.”

The Bear Market Could Extend Further

In all past Bitcoin market cycles, the bear market has lasted approximately one year, with the previous bear market lasting exactly 365 days from peak to trough.

However, the scale of some of the implosions this time around have caused many to pause for thought, especially when one considers that a lot of key market infrastructure in the form of companies such as FTX has now completely evaporated.

The collapse of FTX also took a great deal of liquidity out of the market.

For those who are keen on investing for the longer term, this could provide a brilliant opportunity, particularly for those who are investing in the most tried and tested crypto asset, Bitcoin.

As the SEC seeks to continue their investigations into the space, they made decide that all alt coins constitute securities, and thus fall under their purview, which could damage the alt coin sector indefinitely.

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