Crypto Markets Just Went From Bad To Good, Real Fast!
Article source, here.
TL;DR
Yesterday, Silicon Valley Bank collapsed. Circle, operator of the USDC stablecoin, had $3.3B of its reserves with SVB - which caused USDC to depeg from $1 USD.
A statement was then released from the Federal Reserve, U.S. Treasury, and FDIC telling us all depositors of SVB and Signature Bank will be able to get their funds out within 24hrs.
As a result, fears of further bank runs were stifled, and crypto markets rebounded. Bitcoin moved from ~$20.8K to $24.16 and USDC repegged to $1 USD.
Full Story
Raging Bull is a roller coaster at Six Flags, Illinois.
It features a 208-foot (63 m) first drop, a maximum speed of 73 mph (117 km/h), and a track length of over 5,000 feet (1.5km).
The Raging Bull has nothing - NOTHING - on the crypto markets over the past 24-48hrs.
In the wise words of the Wu-Tang Clan, you best 'Protect Ya Neck.'
(Otherwise you may be at risk of whiplash).
To recap, in yesterday's special edition we spoke of:
The Silicon Valley Bank (SVB) collapse.
The USDC stablecoin losing its $1 USD peg.
Outdated regulation putting the US banking system at risk.
The potential of continued bank runs at regional banks.
The possibility of tech bankruptcies and lay-offs.
Then, after we hit publish, we got news of the crypto friendly Signature Bank going under.
Add that to SVB, and Silvergate late last week (both crypto friendly banks), and you might've started to wonder:
Are we witnessing a coordinated attack aimed at removing the on/off ramps between crypto and the traditional finance world?
(We may well be).
...but the news that managed to turn things around, fast?
A joint statement from the Federal Reserve, U.S. Treasury, and FDIC telling us all depositors of SVB and Signature Bank will be able to get their funds out within 24hrs.
As a result, fears of further bank runs were stifled, and crypto markets rebounded.
Actually, rebounded is an understatement. They shot up so fast they would've made the designers of the Raging Bull rollercoaster blush.
In the past 24hrs, Bitcoin has moved from ~$20.8K to $24.16:
While USDC has repegged to a nice, clean $1 USD:
We may not be out of the woods yet, but damn if this isn't a nice little breather.