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Breaking: Silicon Valley Bank Crashes 67% Pre-Market Amid Silvergate, Crypto Woes

Silicon Valley Bank shares fell 67% in pre-market trading due to Silvergate Bank contagion and crypto VCs pulling out money.
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Breaking: Silicon Valley Bank Crashes 67% Pre-Market Amid Silvergate, Crypto Woes

SVB Financial Group, the parent firm of Silicon Valley Bank, shares plunged over 67% in pre-market hours as venture capitalists, including crypto VCs, recommend portfolio companies to move capital out of the bank.

The stock price of SVB Financial Group (SIVB) is trading near $35 in pre-market hours. The SIVB price fell 60% to $106.04 on Thursday from $265 on Wednesday. The price has fallen over 80% in the last few days.

The tensions related to crypto-friendly Silvergate Bank, the U.S. Federal Reserve’s continuous rate hikes, and bond yields caused major issues for the bank. The bank earlier announced issuing $2.25 billion of shares to help recover from significant loss on its investment portfolio.

It led VC firms to ask companies to pullout money from the lender amid a bleak outlook. The VCs are already facing losses amid the Silvergate Bank debacle and the U.S. SEC-led crypto regulatory crackdown termed “Operation Choke Point 2.0” by the crypto market. The VCs include Peter Thiel’s Founders Fund, Coatue Management, Union Square Ventures, Founder Collective, Cannan, Tribe Capital, and others.

The U.S. regulators’ aggressive campaign to break ties between the banks and the crypto market has led to a systemic impact in the global banking sector. In fact, crypto-friendly Signature Bank shares price is also falling hard, with a 12% fall to $90.76 on Thursday. Signature shares are trading 6% down in pre-market hours.

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Bitcoin and Ethereum Prices Fell Before U.S. Jobs Data

Bitcoin and Ethereum prices have also fallen months low amid fears of a 50 bps rate hike and the Silvergate Bank debacle. In the last 24 hours, the crypto market saw total liquidation of $307.58 million, with almost $250 million in longs liquidated.

The traders are now awaiting the U.S. Bureau of Labor Statistics to release the crucial nonfarm payrolls and unemployment rate data for the month of February today. According to market consensus, nonfarm payrolls likely increased by 205K jobs and the unemployment rate fell to 3.4% in February.

Also Read: Can Bitcoin Price Crash To Sub-$15K And Ethereum $1K?

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Varinder Singh

Varinder has over 10 years of experience and is known as a seasoned leader for his involvement in the fintech sector. With over 5 years dedicated to blockchain, crypto, and Web3 developments, he has experienced two Bitcoin halving events making him key opinion leader in the space. At CoinGape Media, Varinder leads the editorial decisions, spearheading the news team to cover latest updates, markets trends and developments within the crypto industry. The company was recognized as Best Crypto Media Company 2024 for high impact and quality reporting. Being a Master of Technology degree holder, analytics thinker, technology enthusiast, Varinder has shared his knowledge of disruptive technologies in over 5000+ news, articles, and papers.

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Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
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