What The Collapse Of Silicon Valley Bank Means For The Financial Markets
What The Collapse Of Silicon Valley Bank Means For The Financial Markets
In todays important article we are going to cover the recent collapse of silicon valley bank and what it means for all the financial markets ranging from cryptocurrency to stocks. If you haven't been keeping up with the news recently on March 10 one of biggest bank collapses since the 2008 Financial crisis happened with The FDIC taking over operations at the silicon valley bank following it's collapse. If you have any sort of investment in the asset market mainly stocks and cryptocurrency I'm sure you felt the effects of the collapse. This is because many companies and crypto's mainly stable coins had money in silicon valley bank. We are just starting to feel the effects of the collapse there is more to come and that's what I want to discuss in todays article. Before we get into the article I just want to state that none of this is financial advice so with that being said lets get into todays very important topic.
The Stock Market
silicon valley bank was a big bank that had a lot of customers from the tech sector. So with the collapse of silicon valley bank many tech stocks have started to take significant looses. This is because many companies especially small tech businesses and start ups have lost access to funds and assets. This had caused a scare not just within the tech sector but in the overall economy. Leading to many other stocks outside of the tech sector to suffer as well. All this fear in the market has led many to be very speculative about the future of the stock market.
The Cryptocurrency Market
The cryptocurrency market has been a different story compared to the stock market. Initially on the first day of the bank collapse bitcoin and the rest of the cryptocurrency market took a loss. This was especially true for stable coins such as USDC and DAI. With USDC hitting as low as $0.89 on some exchanges. However in the days following the collapse of silicon valley much of the cryptocurrency market begin to rally. The reason for this was because stable coins began to repeg back to the dollar. Which is leaning the market to pump in the short term for now. However we can possibly see the market reverse at any point especially as macro-economic conditions get worse.
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