Bitcoin surged today and crypto enthusists see the biggest one-day increase since the wild price swings seen during November’s market turmoil. This surge takes place as a banking crisis is roaring in traditional financial systems. This includes major talks by US authorities which are trying to stem the spread of concern about the health of the nation’s financial system.
The Fed has announced new stops to help shield banks from $300 billion of losses. Pain is still spreading From SVB’s fall as the FDIC auction for SVB is underway. The rally in crypto space has helped to extend the largest cryptocurrency’s recovery from its worst week in about four months. Concerns over USDC are lessening as it traded with the dollar after depegging last week which I wrote about here
We also had a Binance’s announcement that it would covert the remaining stablecoin funds from a $1 billion industry stability fund to Bitcoin, Ether and BNB token.
Binance’s move reiterates its faith in the major coins which gives investors the same confidence. I wrote about how billionaires might bail out this banking situation but this was not how I thought they would do it. I think CZ is a very smart business man and is positioning Bianace to be a major play within the crypto and traditional financial worlds. As this situation continues to unfold I'll do my best to keep reporting on it. Maybe Silvergate, SVB and these other banks failing will push more adoption as people loos faith in traditional institutions
Posted Using LeoFinance Beta
This was because of the people who backs bitcoin, they wanted to give a massage, that bitcoin is strong enough to tackle situation like this. Bitcoin next move is very important and yes CZ is no doubt is an incredible man in the crypto space.
it looks like CZ has pumped the whole market!
The market really looks so positive for bitcoin and other coin
When banks fail people look to crypto. I also think the Binance news about reallocating into BTC ETH and BNB have helped.
I think the banks and stablecoins are in danger so people are reacting towards it. People will flock towards what they consider safe and I don't think there are many people who want to have too many dollars on their hand.
Posted Using LeoFinance Beta
BTC is king and I think the move proves people think it's steadier than stablecoins or banks.
Bull market, straight ahead!
I hope but trade carefully this market can turn on a dime. I need to stop using leverage because I have been liquidated before.
So did gold and silver
People are running for the hills. With the current stock market pump I'm hoping we don't get a sell off in PMs.
Pretty ridiculous. There is such a double standard.
It's the worst... This week and been really interesting I can't wait to see how things play out. The market open this morning with CPI was pretty wild.
Things are looking totally crazy all around!
It was $23,500 a while ago. I think BTC is going to go bullish again, although its a bit early to tell !
$26K this morning. I'd love to see a run to $31K with Hive getting back to $1
No matter how hard people try to demolish it, they will always fail because it is something where people invest their own free will and the committee here is very good and supportive. And as far as a CZ is concerned, he is smarter than they all think.
Governments can kill new systems, but I don't think it will happen here. As for CZ I am gaining more respect for him.
Have you read the FED statement?
https://www.federalreserve.gov/newsevents/pressreleases/monetary20230312b.htm
They had to mention twice in that short statement:
No losses associated with the resolution of Silicon Valley Bank will be borne by the taxpayer.:) :) :) too bad, i missed this crypto spike. i still can't find anything about exchanges, how much money they have in given banks.
just randomly checked out 2 top50 USA (California, NY banks) East West and NY Community Bank, both were down by 15-17% on Monday. Probably would had to short bank stocks...
any idea where can i find how much and in which banks crypto exchanges hold from their assets??? at the moment, it looks more possible you lose your crypto because of banks
anyway, just finding out the FDIC has only approx. 120 billion in its fund (and can borrow another 100 billion from treasury), obviously that auction won't end well, so what will happen next??? money printing and giving that away???
https://en.wikipedia.org/wiki/Federal_Deposit_Insurance_Corporation
Funds section.
Do you have any idea what will happen after that??? not enough money from auction+FDIC source. And don't mention if another will fall in this week.
Kinda 'interesting' the FDIC has to have only 1,35% of total insured deposits in its fund. (So basically nothing.) I can't even compare it to any other financial insanity in average people daily life.
Would be great to find out quickly how much cryptos, crypto exchanges tied to banks, and if so, which banks, how big %.
I'm not sure exchanges gave any money to the back. The FDIC has backed all fund in SVB at the moment. Investors won't be made whole and I think that's the correct move. The whole where is the money coming from is interesting. If the FDIC can make up the funds for any additional failures who is going to cover the costs?
I really don't want to see tax payer bail out the banks like we did in 2008. The market conditions are different, but in the case of 2008 we should have bailed out home owners which would have saved banks. I think the notion that the rich can take hand outs to cover losses while retail can't have handout because they won't want to work or take on too much risk is just BS.
If not taxpayer bailout, then moneyprinting, obviously. So the result will be the same, probably much worse with possible hyperinflation.
I am pretty sure, exchanges have deep connections to banks, they deal with FIAT money, anyway, so they must have money in banks. (Anyway, FTX had bank investor, too. SoftBank, an Asian corporation, owned by 5-6 banks.)
I asked several exchanges, as I did not find any information about it. This is the usual 'answer' I got (this one is from ByBit):
The raw translation: 'Yes, we do, but it is not your business which bank, how much is the amount. Just give us your crypto, FIAT and we will let you know it, when we go down.'
My favorite part is: since beginning they haven't halted withdrawal... :) :) :) like all banks, exchanges, they will hold only once, the first and last time... :) :) :)
I am going to use only no KYC exchanges and those what don't accept FIAT, provably has no banking connections and focus for privacy coins. (If i must use any other exchange to buy crypto for FIAT, it will be very fast, I buy it and send it towards immediately.)
As we have seen huge action in the market two days ago and still we can see outstanding trading above twenty four thousand but still not confirmed whether the ball market has started or not yet. Not because bitcoin is not closing above twenty-five-two-hundred from its candlestick, it goes up for a while but then comes back down, just like it has gone up to the last twenty six-thousand dollars since yesterday's CPI report. But then it's back. The way the market went up because of the owner of binance.