Krypto is still alive, but US banks tremble
Krypto is still alive, but US banks tremble
The unprecedented liquidity syringe of the Federal Reserve into the market during this time was an attempt to boost a ailing economy.
But before that, Krypto, who carefully followed the movements of the stock market, soon came into a downward spiral. Bitcoin crashed from $ 8,000 to $ 3,000 within a few hours.
It was the "invited" retail and amateur players who tackled crypto and meme shares when the markets recovered. Ultimately, the investment class reached new heights in 2021. While dramatic crash tips and declines of over 80 % are not unusual, the last bull run was able to attract the attention of large and small investors, like no others.
Several public companies made considerable investments in crypto. Overall, it was a record year for space travel. While most of these profits have been destroyed, the recent events in the banking sector cannot avoid how the sheet has turned.
downfall of the banks and the financial system
The now collapsed Silicon Valley Bank (SVB) Ranking of the best banks of the magazine forbes. Not just once, not twice, but the fifth year in a row. It was also included in the first Financial All Stars list.
But not long after everything collapsed. The supervisory authorities took control of the bank after they had not met the withdrawal claims of deposits. It is worth noting that SVB, with a fortune of around $ 200 billion, was the 16th largest lender in the United States and has been active for 40 years. It was considered a reliable source of financing for tech startups and risk capital companies.
While his financial situation deteriorated for several years, the day on which SVB announced plans to clean up his balance sheet was the same day on which Silvergate imploded. The latter celebrated the same mistakes as the SVB, which was sufficient to scare the startups that put on the giants.
The closure has drawn international bank shares down. The failure of the SVB Financial Group and the other companies shortly afterwards shows the ubiquitous risk of the financial system. The regulatory authorities definitely have a lot to explain.
The fragility of centralization: approximately 2023
Banking authorities in the United States, be it the Ministry of Finance or the Federal Deposit Insurance Corporation (FDIC), disparaged the crypto industry as a threat to the country's financial system.
But they failed to point out a much bigger problem that comes from these old institutions. Silicon Valley Bank, for example, has a relatively small footprint in the crypto industry, and its epic breakdown shows that the fixation of the supervisory authorities on the defamation of crypto could be a misguided priority.
This raises a question, is Fiat so fragile? Has the structure of the traditional financial system sown the seeds of instability? The jury agrees.
It can still be said early on whether the putrefaction will also spread to other banks, but the Discussions The "Practices of Decentralization" has never been so loud. And three years after the Covid crash, crypto is still there. It has expanded like never before.
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