Crypto on the Rise Again: Silvergate Collapse Shouldn’t Deter Bitcoin’s Future

• Silvergate Bank – a tech-friendly financial institution in Silicon Valley – recently collapsed and liquidated its assets.
• This was seen as an extension of the Great Recession of 2008, leading many to believe that crypto would not recover from bearish conditions.
• However, Bitcoin’s recent dip and recovery shows signs of trying to pull itself out of the doldrums, showing that it will likely take time for full recovery to be achieved.

The Silvergate Collapse

Earlier today, we reported that Silvergate Bank – a tech-friendly financial institution stationed in Silicon Valley – had collapsed. The company is liquidating all its assets after being shuttered by the federal government due to a high number of monetary failures, and bitcoin suffered because of this.

Not the End For Cryptocurrency

Many are saying this is the start of the 2008 Great Recession all over again. Many think this is a continuation of 2022, and that bitcoin and all its crypto cousins will never recover from bearish conditions, but these thoughts could be jumping the gun, and this piece is a reminder that crypto fans need to remain calm over the coming months if the space is to recuperate and accomplish all it’s meant to do before the year is out.

Crypto Was Already Struggling

First off, crypto fans may have entered a stage of wishful thinking when they thought with bitcoin’s six-month high of $25K (accomplished in mid-February) the bear market was fully and officially over. Let’s not forget just how devastating 2022 really was. The crypto space lost more than $2 trillion in valuation. Bitcoin lost more than 70 percent of its value, and many mainstream assets willfully chose to follow in its footsteps. The fact is that you don’t just recover from something like that over the course of a few months. 2022 will arguably go down as one of the worst – if not the worst – year for crypto on record, and it’s going to take a while for all the wounds to scab up and heal. What’s happening with Silvergate is a reminder of this.

Slow Recovery Ahead

There were bound to be a few repercussions that led into