Silicon Valley Bank's sudden and expedited collapse this week has plunged the crypto market into chaos. Bitcoin, Ethereum and other major cryptocurrencies are expected to see extreme volatility after Circle's $43 billion USDC stablecoin lost its U.S. dollar peg due to its reserves being tied up with the Silicon Valley Bank.
Regulators and Federal Reserve officials are scrambling to prevent the tech startup focused bank's shock implosion from turning into a full-blown financial meltdown in traditional markets. Silicon Valley Bank is a good indication that this wasn't necessarily a crypto specific issue, but rather a case of traditional banks taking on too much risk with their long-duration bonds, which have been hit hardest by FED's rising rates. Now amid the carnage and mayhem, Changpeng "CZ" Zhao, the chief executive crypto exchange Binance, hinted that now could be the time to buy a bank. Then there was news that Tesla billionaire and failed Twitter owner Elon Musk said he's "open to the idea" of buying Silicon Valley Bank.
It's been a really wild week in the world of finance. I thought after the 2008 financial meltdown down we would of figured the system out. However, that does not seem to be the case as regulators have not done much regulating as of late. The policies put inn place have mostly been removed by the last politicians and I get the bad feeling we could be on the precipice of another meltdown that might not only push the world into a recession it might push us into a global depression where only the 1% will fair well and the rest of us will be fighting to survive.
Cheers to some happy Sunday morning thoughts about the financial collapse. Do your best to be prepared by raise cash, reduce debt and position your portfolios for a bumpy ride.
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Yeah, you know the finger is going to get pointed at crypto on this one, but that is only a small fraction of it. So ridiculous!
For sure it's even funnier to see people with money tied up calling for a bail out. Mark Cuban had a few million in SVB.
Interesting. Figures they would be looking for someone to help and someone to blame.
It's so frustrating to see these wealthy complain about retail, bailouts and government hand outs to the poor, but will ask for the same thing under a different name.
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There is a lot of bad news circulating in the market right now but if we see that even after such news Bitcoin is standing in a good place and if it stays like this for some time then we will see that It will go up again. And now a news is going around today that elon is buying the bank that has become corrupt. Some people say that the bull market has come too close and some say that the market will crash. This is the time to do DCA in the market.
Bitcoin's strength is great to see my only fear is the someone is trying to get liquidity before pushing it lower.
it's unstoppable, anyway. when they have to put out the kids army, like Greta T. with crap like that: save the banks, save the world! :) :) :) yes, she said it! + the insane money printing, and yes, for 2 years no US bank failed, but obviously it was just a very short term solution, and because of this system designed to fail, it will, no matter they want by purpose or not.
Funny to see the ('crypto') system guys like the chinese and elon popup to save it. I hope, there is no question about the why, they are part of the (banking) system...
would be great to read an article about other top50-100 coins, which ones are tied to banking system in any way, meaning. Behind the obvious, like Tether, BNB, XPR, Chainlink, Binance USD. I already knew these, as: stay the faacking far from them, but I guess there is many more in publicly unkown ways.
The next few weeks should be very interesting. I really don't see these crypto guys actually stepping in to buy SVB I think it's more of PR stunt.
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Definitely not, its all 1 gang, it is their interest to say what they say. anyway, i still cant find a proper client list. Only the msm same, saying nothing articles... crunchbase perhaps has, but i wont pay for it.
so only USDC known, confirmed, as an affected crypto player, but plenty more can come, I suppose they had relations with exchanges, too. And I suppose, not just 1.
Just reading about the "European" division (UK, GER, SWE, DEN, ISR) and China, but already fund Indian crypto firm, too. looks like 1/3 of the bank is the foreign divisions.
UK gov already reacted: save the banks! anyway, if dumb slaves can 'finance', support a war, they can pay off this one, too, like most of the times, still insane, but better than finance a war.
anyway, nobody knows how much minus it will be when they sell their assets, if that's coming.
and in crypto, i am sure not a single business will advertise, they had to do anything with this bank, unless it is not a must.
sure it will be 'interesting', but more or less we know the outcome, it's played down 100s of times.
Wild stuff I see there is more info coming out hourly. Signature Bank was closed by regulators on Sunday, the second massive bank failure in three days!
yes, it is. it will be a wild Monday, too. if they release client lists, more than wild.
then it is the 3rd Silvergate, Silicon Valley, Signature. the last 2 was top20 and top40 based on assets...
well, the conspiracy theorists will be right, again... :) :) :)
wonder about the why these? maybe crypto regulation, control reasons? as now, it is obvious - at least would surprise if not - plenty crypto exchanges will be affected, probably coins, too.
probably you'll have a great Monday with silver.
do you think, that's the reason why BTC, crypto just started to go up again??? maybe I'll miss the next 5k upwards, but i wont buy until its not clear for sure, crypto exchanges involved or not. wonder who were buying BTC like hell in the weekend...
I think the government will rather bail out the bank than let billionaires acquire them. The system was propably never fixed properly, they just put a band-aid on it. It's never a good idea to be fully dependent on the system.
Who knows I would pet them fail, but if it's going to destabilize the economy the government will step in.
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Time will heal this wound as well, I know Crypto is hit hard due to this market, but we will fight back with full power hopefully.
Time will heal all then question is how much damage will we all need to recover from.
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It's a question and no body knows it's answer.
Fore sure it's pretty crazy time we live in!
I think crypto has nothing to do with svb bank. I still haven't read all the news about this yet !
It is not all in reality it was a run on the bank by tech start ups.
I think it was the expected result because a lot of these billionaires have money related to the companies that will suffer. I honestly think that they shouldn't bail Silicon Valley bank out because it's a bunch of overvalued tech companies that were already suffering. I don't even know what they expected when they have a ton of uninsured deposits and why they didn't really spread out their funds. That bank catered only to tech and VC funded businesses so they didn't diversify enough.
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I agree let the rich suffer for their choices I know they would make us suffer.
It is considered to be a difficult time for cryptocurrency as no one understands what is going on in the market yet. As we know Bitcoin has come down from $25,000 to $19,000 but the good thing is that it is going up again. As for myself, I feel like it may take a while for bull run to arrive.
If we keep getting bad new it will take a while for the next bull cycle.
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