Crypto Bank Stocks tumbles in the market!

Mar 9, 2023 thejournalbiz

Shares of banks with crypto ties tumbled in Thursday trading!

Only a day after Silvergate Capital became the first player in mainstream finance to go down in the crypto industry downturn.

Tweet on Silvergate Capital

Shares of banks with crypto ties tumbled, a day after Silvergate Capital became the first player in mainstream finance to go down in the crypto industry downturn.#crypto #Banking pic.twitter.com/nn4l1ybxke

— The_Journalbiz (@the_journalbiz) March 9, 2023

Factset chart

Silvergate, which said Wednesday evening that it would wind down and liquidate, shed another 30%. Signature Bank declined roughly 7.6%. Customers Bancorp fell 5%, while Metropolitan Bank Holding, which said this year it would step back from crypto, was about 2% lower.

The sector was broadly lower, with the KBW Bank Index down 3.7%. SVB Financial, owner of the startup-focused Silicon Valley Bank, dropped more than 37% after it launched a share offering and Moody’s Investors Service downgraded its credit rating.

“There’s the overhang of the negative news from Silvergate. You also have pressure on other midcap banks like Silicon Valley,” said Jared Shaw, a senior mid-cap bank analyst at Wells Fargo & Co. “That’s being reflected in the rest of the space today.”