Silvergate Capital Corp Reports $1B Loss in Q2 After $8B Withdrawals

• Silvergate Capital Corp reported a net loss of $1 billion in Q2 of 2022 due to investors withdrawing over $8 billion in deposits in the last three months of 2022.
• Silvergate Capital became a publicly traded company in 2019 and specialized in handling digital assets and enabling exchanges, institutions, and traders to exchange crypto for fiat currencies.
• In a preliminary earnings report, total deposits from digital asset customers dipped to $3.8 billion at the end of December last year, relative to the $11.9 billion reported at the end of September.

Silvergate Capital Corp, a publicly traded company since 2019, recently reported a net loss of $1 billion in Q2 of 2022. The company, which specializes in handling digital assets and enabling exchanges, institutions, and traders to exchange crypto for fiat currencies, has been impacted by the collapse of crypto exchange FTX.

Investors shaken by the collapse of the exchange withdrew over $8 billion in deposits in the last three months leading to December 2022, resulting in the $1 billion loss. In a preliminary earnings report released on January 5, 2023, Silvergate reported total deposits from digital asset customers dipping to $3.8 billion at the end of December last year, relative to the $11.9 billion reported at the end of September.

To maintain liquidity, Silvergate sold $5.2 billion of debt securities at a loss of $718 million in Q4. Despite the losses, the company’s shares were up by almost 4% in pre-market trading.

The collapse of FTX has had a significant impact on the digital asset sector, with Silvergate’s earnings report indicating the extent of the damage. The company is now faced with the challenge of rebuilding its customer base and restoring the confidence of investors, a task that will not be easy.

Silvergate’s losses are a stark reminder of the risks associated with investing in digital assets, and the importance of diversifying portfolios and exercising due diligence before investing. The company’s future remains uncertain, but with its shares up in pre-market trading, Silvergate could be on the path to recovery.


LUNA Price On Verge Of Breakout: Could Rally To $5.00?

-LUNA price is trading at $2.08 and is on the verge of confirming another breakout that could quickly propel it to $5.00.
-The asset needs to hold support above $2.00 for buyers to have more time for accumulation.
-Buyers are in control but the uptrend may be nearing its elastic limit ahead of a pullback.

LUNA price is trading at $2.08 and is on the verge of confirming another breakout that could quickly propel it to $5.00. This is a potential new support level, as traders must be wary of possible profiteering ahead of the next bullish move. To ensure this, Terra must hold support above $2.00, to give buyers more time for accumulation ahead of the anticipated breakout.

At the moment, Terra is facing declining volumes, which according to CoinMarketCap, has dipped -49% to $152 million in 24 hours. Low volume is a concern as it denies the asset the momentum to push to higher levels. In order to assess the bullish outlook in LUNA price, the 100-day Exponential Moving Average (EMA) is reinforcing the seller congestion in the area in confluence with the twice-tested falling trend channel’s upper boundary.

To confirm to investors that the path with the least resistance is to the upside, Terra needs to close the day above this level. The position of the Stochastic oscillator in the overbought region shows that buyers hold the reins. However, it could also mean that the uptrend is nearing its elastic limit ahead of a pullback, accentuated by profit booking.

Therefore, traders should approach LUNA price cautiously and with an open mind and realize that failure to break above the hurdle at $2.30 could quickly lead to a retracement. On the other hand, a successful break above this level could trigger a buying spree that could propel Terra to higher levels. Nevertheless, investors must understand that the crypto market is volatile and they should use reputable sources to keep up with the latest news and developments in the industry.