- The crypto industry took a severe hit because of the FTX fiasco. The market was only gaining back momentum when Silvergate threw another blow—or got blown. Both directives work in this case.
- If China’s inflation data, to be released on the 9th of March, is lower than expectations, it would mean a boost for Bitcoin prices. Why is China’s inflation data important? More on this is below!
- Dogetti (DETI) presales blow up! The project raises $428,416 in a span of fewer than five weeks. Does this mean the depths of crypto winter are over?
What do all these events mean for the crypto market? Let’s take a deeper look!
Silvergate may be beyond the point of saving
SIlvergate is a bank. Not specifically a crypto bank at that. These guys started in the Real Estate industry and ventured into the crypto market in 2014. Now, Silvergate is a sort of liquidity provider for many major crypto exchanges around the world. To name a few of Silvergate’s clients – Coinbase, Galaxy Digital, Paxos, and many more!
Silvergate was one of the most important infrastructures for the crypto industry. The fall of Silvergate is a problem for the entire crypto ecosystem. Why? Well, because they heavily facilitated crypto-to-fiat conversions. With Silvergate drowning, it is going to be more difficult to convert your Bitcoins to Dollars.
But why is Silvergate in trouble? How did it get here? Truth be told, it was their fault. But it was also a domino effect of FTX.
The FTX collapse spooked Silvergate customers and hence, caused a withdrawal of $8.1 Billion in one quarter. While this wouldn’t have pushed them to an existential crisis, it is important to note that Silvergate reported a crazy loss of $1 Billion last year.
After such a fiasco, who would stick around? Surely not Coinbase, crypto.com, Galaxy Digital, Paxis, and many other smaller names! SIlvergate is almost hollow now.
Looking east might help with Bitcoin price predictions
Last week when China’s PMI came out strong, Bitcoin prices rose by 2%. Why? Well, because China is also one of the top participating countries in the crypto market! The Chinese economy is quite significant for the crypto market.
Considering these points, it would be quite insightful to keep an eye on the Chinese inflation data that is bound to be released this week. If it is lower than expected, guess what? Good news for Bitcoin!
The Don of the Crypto world is here
Dogetti has had one of the fastest-selling presales in the history of presales. The project aimed to raise $500,000 in its first presales stage, and it has done $434,339! All in just five weeks. The 5th week isn’t even over yet.
Dogetti garnered the attention of investors for several reasons – one, it has a crazy rewarding ecosystem, and two, Dogetti is all about the community.
To put the above two points in perspective, 2% of every transaction that occurs in the Dogetti ecosystem is redistributed among the community members. Essentially, you earn Dogetti by just holding them in your wallet.
Going further, Dogetti allows its investors to take full control over their investments. What this essentially means is that you ( a community member) can vote on the workings of the project and also have a say on the project’s partnerships, including the charities that Dogetti helps. Oh wait, we didn’t tell you yet. So, 2% of every transaction within the Dogetti community is given to charities. Noble, indeed.
The crypto world is in the middle of a storm; something crazy happens every week. With Silvergate down, it will be interesting to see if the crypto-to-fiat conversions happen with the same efficiency. China’s inflation data may or may not favor the crypto world, but it will surely have an impact. The world says crypto is in its winter season. But, projects like Dogetti provide the much-needed bonfire to the investors. If you haven’t checked out Dogetti, you might as well do it now if you want some warmth in this cold crypto season!
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