Good evening/morning guys.
It came to my attention that the next two days are pretty much critical for crypto currency.
Silver gate…. The company above, are pretty much the bank that supplies liquidity to all these crypto exchanges.
Their biggest customer…FTX 80% of their funds were invested in ftx according to sources.
Now we have an interesting scenario that could be playing out.
Has price risen for bitcoin in anticipation of this companies news announcements. Because this company is experiencing a lot of withdrawals from clients and their previous statements have indicated things are not looking good for them. Given that it has dropped so significantly, it was over $100 a share in October last year and is now trading at a measly $13.
So let’s put the logic together. The biggest crypto bank that supplies liquidity to all these exchanges has effectively experienced a “mutiny on the bounty” where the investors have sold up and crashed the stock on the fears of silvergate being investigated given that their biggest client was FTX….how does this look for bitcoin?
Well this move up is not because everyone is excited about silver gate going to the pan. I believe most people are not aware of silvergate declaring earnings on the 17th of January. It’s listed on the NYSE stock market.
Could this move in crypto be setting up to absorb the fact that silvergate may default due to the commitments they have with all these crypto exchanges. Gemini genesis they are scrambling to find money. They too are silver gates customers.
This is what trading is about. We speculate on information we have access to but must think outside of the box.
Prices are moving up. Who would be thinking about it going down when everyone is buying. Well we know they ain’t buying because it’s a bull run. They are being sold to until they get fully committed and the. The market will snap up that liquidity.
17th January could trigger a sell off in crypto. Surprisingly the US market is closed tomorrow. So investors won’t have any time to get rid of the silvergate speculation before the news.
Let’s see how it plays out.
Mad love
T
