CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 78.1% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
US English

Bitcoin steadies near lows hit after fall of Silvergate

By Reuters_News

11:00, 9 March 2023

A representation of virtual currency Bitcoin is seen in front of a stock graph in this illustration taken January 8, 2021.
A representation of virtual currency Bitcoin is seen in front of a stock graph in this illustration taken January 8, 2021.

By Elizabeth Howcroft and Tom Wilson

- Bitcoin steadied on Thursday near its lowest since mid-February, after U.S. crypto-focused bank Silvergate said it would voluntarily liquidate, the latest in a series of high-profile crypto collapses triggered by the collapse of the FTX exchange.

Silvergate Capital Corp SI.N said on Wednesday it planned to close and voluntarily liquidate, after warning last week that it was evaluating its ability to operate as a going concern.

The California-based company, which was a key banking partner for crypto businesses, had been hit by investors rushing to withdraw around $8 billion of deposits after the sudden bankruptcy of FTX last year.

Bitcoin was last down 0.4% at $21,624 , having fallen 2.2% on Wednesday to a 3-1/2 week low of $21,590.

Investors and analysts said the market impact of the shuttering of Silvergate - seen as an important bridge between the crypto sector and traditional financial world - was limited as it had been widely expected.

Multiple partners of the bank, including major crypto exchange Coinbase Global Inc COIN.O, severed ties with Silvergate last week. Others, including Binance, said they did not have any asset losses at Silvergate.

"Investors in bitcoin have had some time to digest this news, they are also much more focused on macro economic developments," said James Butterfill, head of research at digital asset manager CoinShares.

XRP/USD

0.54 Price
+1.460% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 0.01168

ETH/USD

3,201.09 Price
+1.560% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 21:00 (UTC)
Spread 6.00

Gold

2,346.11 Price
-2.100% 1D Chg, %
Long position overnight fee -0.0194%
Short position overnight fee 0.0111%
Overnight fee time 21:00 (UTC)
Spread 0.40

BTC/USD

65,898.65 Price
+2.010% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 21:00 (UTC)
Spread 106.00

"With growing doubt in the bond market over the risk of the damage further interest rate rises will do to the U.S. economy, it is supporting bitcoin prices to some extent, despite the bad news on Silvergate."

Bitcoin has gained more than 30% so far this year, clawing back some of its losses of almost 65% in 2022 that were triggered by a string of high-profile corporate failures in the crypto world.

 

 

Reporting by Elizabeth Howcroft and Tom Wilson. Editing by Jane Merriman

 

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The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
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