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Did SVB & Credit Suisse’s Failure Have An Impact On Crypto?

SVB & Credit Suisse's Failure

In recent times, the combination of a few factors in the financial markets has led to a significant rise in the BTC price (upwards of 28% only in one week).

According to the latest statistics the BTC has traded at $28,000 which is the biggest growth since June 2022. And you will find more information about that and the banking collapse on this page below. But first, it’s important to say that such an impressive BTC rise happened by and large because of the current liquidity crisis in the banking sector and the latest trend of accumulation during dips under $20,000. Because that is a long-term trend some experts were talking about the possibility of the banks’ failure a few years ago.

It should also be noted that BTC was originally developed precisely because of the crashes that occurred in the banking sector in 2008. And the SVB collapse this year showed how digital currencies (mostly Bitcoin) are important for the global economy.

It may be the best and most reliable alternative to the traditional banking system, so in the nearest future, there can be a trend of BTC used as a way of opting out of unadvisable banking practices. But now you can try to find out why SVB & Credit Suisse’s failure has an impact on crypto.

The Truth About SVB & Credit Suisse’s Failures – Read This To Save Your Money Tomorrow

The Credit Suisse collapse that was written about almost every day during the last few weeks could be even more terrifying if UBS won’t agree to buy it for $3.25 billion. This situation is large because, according to the latest statement from the Saudi National Bank, they envisage no help from Credit Suisse.

So even the Swiss National Bank liquidity injection of 50 billion Swiss francs doesn’t help much, so without UBS’s help, there will be no chance to absorb the coming writedowns. It’s interesting that in 2008 the Swiss government saved UBS, so today the full circle came.

The same biggest bank failure since 2008 happened in the US with the Silicon Valley Bank (SVB). And according to the latest announcement and the article the liquidity that has the SVB is around US$2.2bn with US$7.0bn in debt outstanding.

That is mostly the unsecured bond debt and the preferred equity. But for sure the SVB failure has more effect on US citizens than the situation with Credit Suisse, and even set off panic around the world. For sure one of the most important reasons for that panic was the attempts of the US government to assess its impact on different financial institutions.

And for sure the only thing that the BTC and other cryptocurrencies executives and investors say is that they said that it’s going to happen soon. At the same time, there are so many people all around the world who are just sure that the main reason for these huge bank collapses is the actions of crypto investors.

It should be noted that banks are failing only because there is no perfect system and even such big institutions also have their problems. And the only thing that the crypto is doing there is looking on the outside at all the mess that takes place in the banking system. But according to most crypto-experts, only those politicians who do not understand the way the system works and the opportunities and transparency it offers to everyone can speak out against cryptocurrencies.

It’s really easy to catch scammers here in the crypto world before they can do anything and reap the benefits of those actions. Today such a situation is impossible in the banking system, which is partly the reason for its regular failures.

Truth About SVB & Credit Suisse's Failures

The Real Impact Of SVB & Credit Suisse’s Failures On Crypto – BTC Of $28,000 And 1.09% Ethereum Rise

So based on all that information about the huge cons of the banking system today and some really great mix of crypto pros can we say that the banking failure has some impact on the crypto world? It is rather difficult to claim that this is the case. Still, the collapse of the largest banks has once again shaken confidence in the reliability of the banking system. In the aftermath, many crypto investors have become even more convinced of their decision to invest in cryptocurrencies.

Meanwhile, the ardent opponents of crypto also have taken a distinguishable view of Bitcoin and other digital currencies. The growing interest in cryptocurrency and recent trends in the investment market have affected the fluctuations of Bitcoin and other TOP cryptocurrencies. As a result, the BTC topped $28,000 for the first time in almost a year.

The same fluctuations can be seen in Ethereum statistics the price of which has risen by 1.09% in the past 7 days. For sure that is not the same impressive result as for BTC, but for the second most popular cryptocurrency in the world that is great.

Crypto experts are confident that these results are not the maximum of what will happen in the market soon, mainly due to the unstable situation in the global banking system with the bubbles bursting and new collapses.

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Arnab Dey

Arnab is a passionate blogger. He shares sentient blogs on topics like current affairs, business, lifestyle, health, etc. If you want to read refulgent blogs so please follow RSL Online.

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