The largest crypto currency by market capitalization traded as low as $20,050 on Thursday, its lowest level since Jan. 14

Bitcoin (BTC) dipped below $21,000 for the first time in seven weeks as investors continued to worry about the impact of crypto-friendly bank Silvergate Bank’s implosion.

On Wednesday Silvergate Capital (SI), the parent firm of the lending focused bank, said that Silvergate Bank would liquidate its assets voluntarily and close operations.

The biggest crypto currency in terms of market capitalization traded at $20,050 on Thursday, its lowest level since January 14, before recouping to just more than $20,370, off more than 7.6 per cent during the last 24 hours.

This remains a difficult environment for crypto due to the repercussion from Silvergate Capital, so bitcoin could see more selling pressure and test the $20k mark, Edward Moya, senior market analyst at Oanda, wrote in a Thursday note.

In the last 24 hours, bitcoin posted over $98m in liquidations, with more than 94 per cent of them being long positions, according to Coinglass data.

Investors became worried and the price of bitcoin began to decline last week when Silvergate said that it had delayed filing its annual report and warned of its possible inability to continue as a ‘going concern.’

Moya wrote that Silvergate Bank’s closure underlined crypto banking’s ongoing problems. Moya further said that ‘the cryptoverse now tries to find a new services firm to help make payments and other deposit-related services.’

Stefan Rust, Chief Executive Officer of economic data-aggregator Truflation, wrote to CoinDesk that Silvergate’s crisis will slow the rate of institutions entering the market because ‘they do not have an on- and off-ramp that scales as fast.’

It will also drive more crypto business offshore, he wrote. Most, however, will find another on- and off-ramp that they can use to work around this.