Jamie McNeill
Thus far in March, crypto prices across the board have been off to a relatively slow start, with many hoping that the price appreciation would have been closer to reflecting January’s gains.
However, there is nothing to be worried about and there are many reasons for this relative stagnation – as well as indications that the prices of major assets could pick up throughout the rest of the year.
Continued Concern about Silvergate has Made Markets Hesitant
The main reason why the markets have been somewhat hesitant over the last few weeks has been the apparent implosion of Silvergate, which is one the largest crypto-friendly banks.
The bank is one of the most significant in the space, having made loans to companies such as Microstrategy, KuCoin, Coinbase, and a series of other high-profile names.
The potential collapse of the company will mean that it will become harder for many of the largest companies to access liquidity in the short term.
Many companies have already decided to cut ties with Silvergate, such as Coinbase and Gemini.
SEC Continues on its Path of Regulation
In light of the drama in 2022, the SEC has decided to continue on its path of regulating the crypto industry, which has also played a strong role in keeping prices suppressed.
Although this has been welcomed by many of the larger participants in the industry, who are grateful that there will finally be some clarity, there is also concern that the SEC may be taking an approach that is too heavy-handed.
Other regulatory authorities, such as the SEC’s counterpart in Canada, have already issued new guidelines that crypto companies must comply with in the next 30 days, or face more severe penalties.
Bullish Signs for Ethereum
However, there are also some bullish signs, including the fact that Ethereum continues to process a high number of transactions.
This has meant that the Ethereum blockchain has just now registered its highest monthly earnings yet.
The continued use of block space is hugely beneficial for the value of ETH, and there are many who are capitalizing on this boost by allocating into the largest Turing complete blockchain.
Ethereum just had its highest month of earnings ever (in a bear market) pic.twitter.com/QOuvGFohBR
— tomuky.eth (@tomuky) February 28, 2023
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This article was written for Business 2 Community by Jamie McNeill.
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