Silvergate Capital Corp, a California-based crypto-asset lender, is shaking up the traditional and Digital asset markets with its latest disclosure. The crypto market recorded a decline of around 4% over the past day. Meanwhile, the largest cryptocurrency, Bitcoin price is struggling to stay above the $23k mark.
Based on a report by Cryptoquant, market technical and on-chain data analysis suggests a possible price reduction for the future. The report also noted that short-term holders who are factors in the crypto market plunged slightly but long-term holders chose not to participate.
The Bitcoin chain chart on illustrates increasing selling by short-term holders. While exchange inflows by 1-3 month holders reached the highest value recorded since June 2022. The crypto market recorded a surge in US dollar-backed stablecoin outflows from exchanges.
This metric shows that the market is now unable to support further price surges and may lead to another price drop. Maintaining technical analysis of major digital assets such as Ethereum (ETH) and Binance shows bearish and pre-bearish signals.
The report states that Ethereum's technical chart shows a negative divergence below the resistance level. Bitcoin, Ethereum and BNB make up around 65% of the cumulative market cap. BTC and ETH prices have already dropped more than 4%. The cumulative market cap also declined by 4% to $1.03 trillion.
