Bitcoin: Fall of Silicon Valley Bank might be a silver lining for BTC, here’s why
Fear, uncertainty, and doubt (FUD) about Bitcoin stemming from the collapse of a single bank contributed to its downward trend earlier this week.
Yet, the failure of yet another bank may have reversed the public’s opinion and brought back support for the king coin. However, Bitcoin may have been affected differently by the Silicon Valley bank run that triggered a drop in USDC.
Read Bitcoin (BTC) Price Prediction 2023-24
The California Financial Institutions Control Board closed Silicon Valley Bank, a significant bank for startups with venture capital backing. It was the first bank insured by the FDIC to go bankrupt in 2023.
The California regulator has designated the FDIC as the receiver to safeguard insured savings, although the reason for the shutdown is unknown. SVB, one of the 20 largest banks in the U.S. by total assets, financed several startups focusing on cryptocurrencies.
People’s reactions to the SVB failure suggest uncertainty is the current prevalent mood. The process of withdrawing assets for customers with $250,000 or more has sparked discussions based on a thread by Mark Cuban (an American businessman) and the following comments.
In addition, Circle announced in a statement that over $3 billion of its $40 billion was held by SVB. Another negative reaction has been the flight of USDC holders exchanging their holdings for other stablecoins and Bitcoin.
According to Santiment statistics, the accumulation of whales and sharks continued despite the FUD that was caused by the Silvergate crash.
As of this writing, addresses with 10-10,000 BTC had risen to over 67%. Looking at the data, it is clear that on 11 March, there was an upswing in whale and shark accumulation, coinciding with the time that USDC was
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