We can say it is a miracle that the United States financial system is still standing. Over a week ago the US experienced its second and third ranked bank failures in US history. The Silicon Valley bank and Signature bank collapse left multitudes of individuals and startups distraught and devastated.
Founded in 1983, silicon valley, the 16th largest bank in the US has supported and catered to over 30,000 entrepreneurial companies including some of the popular technological companies today. By the 10th of March, 2023, the bank was seized by California regulators leading to panic among customers and investors alike.
The bank has suspended all its activities on social media platforms. Following the SVB collapse, signature bank was shut down as regulators warned that keeping the bank open would threaten the stability of the financial system. Signature bank, which was founded in 2001, offered business and personal banking products and services with a focus on lending and deposits and in 2008 opened its doors to cryptocurrency activities. Amidst all of this drama, the second largest stable coin, USDC from circle internet finance depegged from the dollar and fell as low as $0.94 since its lowest level in April, 2021.
The US government has shown interest and support for those who are victims of these bank failures however many have continued to contend that these bank failures happened as a result of their over exposure to assets that came under pressure when the interest rates are hiked.
On the flipside, bitcoin price seems to be moving upwards, today we will touch on all of these topics. From the Silicon Valley Bank collapse, Signature Bank Collapse and its impact on the stable coins and the crypto market and if we are moving towards a bull run.
The conversation is packed and I can’t wait to get into it, make sure to invite your community and subscribe. Let’s go on a quick break when we come back we will delve into it .