• Silvergate Bank’s SEN platform was shut down due to contagion concerns from the implosion of FTX and further regulatory scrutiny.
• 21.co co-founder and CEO Hany Rashwan believes that bitcoin’s price is being driven by macroeconomic factors, like inflation, rather than Silvergate’s closure.
• Federal Reserve Chairman Jerome Powell is set to testify before Congress on Tuesday about the Fed’s policies concerning inflation and unemployment.
Silvergate Bank Shuts Down Crypto Lending Platform
Silvergate Bank has announced the suspension of its 24/7 crypto exchange service, known as SEN, citing contagion concerns from the implosion of FTX and further regulatory scrutiny. The platform had been used by major crypto players such as Kraken, Gemini and Binance US.
21.co Co-Founder & CEO Weighs In On Bitcoin Price
21.co co-founder and CEO Hany Rashwan said he does not believe that Silvergate’s closure will have a “material impact” on the price of bitcoin (BTC). Rather, he attributed recent price levels to macroeconomic factors such as inflation which is still “both rampant and here”.
Fed Chair Testifying Before Congress
Federal Reserve Chairman Jerome Powell is set to testify before Congress on Tuesday about the Fed’s policies concerning inflation and unemployment in light of the ongoing pandemic situation. This testimony could provide insight into how these issues may affect the economy going forward and how they might influence bitcoin prices in turn.
Bitcoin Prices Being Driven By Macro Factors
Rashwan believes that while Silverage’s closure may be one factor driving bitcoin prices right now, it is not a major one compared to other macroeconomic factors such as inflation which are having a greater effect on its performance in markets right now.
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