Massive sell-offs as Silvergate fallout, BingX’s traders leveraging opportunity by copy trading
Singapore — BTC fell 4% as Crypto bank Silvergate shares dropped 57%. Massive sell-offs as investors seem to be jumpy as Silvergate faces issues
In the fourth quarter, Silvergate suffered a loss of $1 billion, which eradicated nearly a decade’s worth of profits. This was due to the bank’s need to maintain liquidity and prevent a bank run by selling assets at discounted prices. As a result, Silvergate Capital experienced a deposit drop of $8.1 billion in Q4, and this was largely attributed to the fallout from FTX’s collapse in November.
The fall of FTX, a cryptocurrency derivatives exchange, had a significant impact on various institutions because FTX was a key player in the crypto market and its collapse triggered a wave of liquidations that resulted in losses for traders and lenders. Moreover, FTX’s failure highlighted the risks and fragility of the crypto market, prompting market participants to reevaluate their exposure to crypto assets and derivatives. As a result, the fallout from FTX’s collapse reverberated throughout the crypto ecosystem, affecting institutions that had direct or indirect exposure to the market.
With users panic selling BTC, users from BingX have been seen to increase their copy trading activities. Short Dusk, Blur, ASTR, COCOS and other tokens to earn profits. Contract trading, also known as futures trading, allows investors from BingX to get profits from both bull and bear market. With futures trading, BingX’s investors can earn money even when a crypto is dropping in value by taking short positions, which means betting on the price decline of the underlying asset. For example, if an investor believes that the price of Bitcoin will drop in the future, they can sell Bitcoin futures contracts at the current price and buy them back later at a lower price, pocketing the difference as profit. This hedging strategy can help investors minimize their losses or even profit from market downturns. However, it is important to note that futures trading is a high-risk activity and requires knowledge and experience in market analysis and risk management.
Founded in 2018, BingX has grown to become the world’s leading social trading platform. It is a global digital asset, spot, and derivatives trading platform that provides a safe, reliable, user-centric, and open ecosystem with intuitive social trading features BingX offers BLUR USDT , DUSK USDT & COCOS USDT derivatives and Crypto Copy Trade services to more than 100 countries and regions worldwide with over 5 million user
Company Name: BingX
Contact Person: Elvisco
Disclaimer: The views, suggestions, and opinions expressed here are the sole responsibility of the experts. No Economy Jack journalist was involved in the writing and production of this article.