When Silvergate lost 60% of its value last week after Coinbase (COIN) stopped accepting related payments, Bitcoin (BTC-USD) barely moved. BTC-USD held the $23,500 level through March 2 before falling to $22,300.
The biggest cryptocurrency by market capitalization is stable. It is not reacting to Silvergate’s isolated issue of delaying its annual filing.
Coinbase, which rallied to over $80 last month before settling in the low $60s, has a short float of 18.92%. Bears are betting that the crypto platform’s business will worsen. In February, Coinbase suspended trading for Binance USD (BUSD-USD) since the stablecoin did not meet its listing standards.
The strict standards from Coinbase will hurt transaction volumes in the near term. Ultimately, the tougher rules will benefit the company. It is aiming to take Binance’s business to attract more customers to join its secure online platform.
Bitcoin has the strongest prospects. Its value in the crypto market is not dependent on Coinbase or Silvergate. BTC failed to fall below $16,000 in Dec. 2022. It rallied from $22,000 to $24,000 in response to the stock market’s bullish sentiment. Stock markets are betting that the central banks will pivot, cutting interest rates this year.
Bitcoin is a bullish bet on rate cuts.
