So Silvergate Bank, based in California, is in trouble because it made bad loans to FTX, BlockFi and so on.
Bitcoin immediately fell, and all altcoins fell further.
Despite the fact that Silvergate is a bank not an exchange. It holds no cryptocurrency, it wasn't hacked, there was no fraud. They just made bad loans like every bank does. What has that got to do with the price of bitcoin?
The only part of crypto potentially affected may be stablecoins holding dollars on deposit at Silvergate. Tether and others have said they have no exposure to Silvergate because they hold their dollars in the form of Treasury bills instead.