CryptoX – Cryptocurrency Analysis and News Portal Every U.S. bank is facing similar structural pressures to what drove crypto’s one-time favorite bank to the moon – then into the ground. Original Source The post A Tale of 2 Banks: Why Silvergate and Silicon Valley Bank Collapsed appeared first on CryptoX. CryptoX Portal
Silicon Valley Bank, a major financial institution for venture-backed companies, was shut down by California’s financial watchdog on March 10 — marking the first Federal Deposit Insurance Corporation-insured bank to fail in 2023. The California Department of Financial Protection and Innovation confirmed that Silicon Valley Bank was ordered to close but did not specify the reason for the shutdown. The California regulator appointed the FDIC as the receiver to protect insured deposits. Depositors “will have full access to their insured deposits no later than Monday morning, March 13, 2023,” read…
While not perceived as “crypto-friendly” as Silvergate, the tech-forward Silicon Valley Bank did count a number of crypto entities as clients – especially hedge funds and VC firms. According to CoinDesk research, Blockchain Capital, Castle Island Ventures, Dragonfly and Pantera all had relationships with the bank. Source
While Silvergate’s demise may have rung alarm bells for investors around the durability of banks with close ties to the crypto industry, the rout has spread to more traditional lenders. Most notably, SVB Financial Group (SIVB), the holding company of Silicon Valley Bank, is down more than 40% on Friday and now off just shy of 80% for the week. The tech-friendly lender earlier this week announced a loss of around $1.8 billion on a securities portfolio valued at $21 billion, prompting a share sale to shore up its capital.…
Bitcoin (BTC) struggled to reclaim $20,000 support at the March 10 Wall Street open as fears mounted over Silicon Valley Bank (SVB) contagion. BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView Trader targets $18,000 BTC price Data from Cointelegraph Markets Pro and TradingView followed BTC/USD as it nursed fresh losses, reaching $19,569 on Bitstamp. The pair had seen further downside prior to the open as embattled SVB Financial saw another 60% wiped off its stock price. In a move that mimicked crypto exchange banking partner Silvergate, SVB also began to spark knock-on effects…
On March 10, 2023, market observers are discussing the troubles Silicon Valley Bank (SVB) faces, as the firm’s stock slid more than 60% in the last 24 hours. SVB was forced to sell a $21 billion bond portfolio at a $1.8 billion loss. CEO Greg Becker insists that the financial institution “will be well positioned” and is “well capitalized” going forward. SVB’s stock, SIVB, was halted during the premarket trading session on Friday after the bank announced it would release news. As SVB’s Foundations Shake, Concerns Grow Over a Potential…
As Silicon Valley Bank fails to reassure customers of its financial state, crypto-focused venture capital investors urge the firms to remove assets from the bank. Both stock and crypto markets are in the red, causing panic among traders. The announcement follows a dramatic decrease in the shares of SVB Financial Group, the bank’s parent business, which plunged by more than 60%. The loss came on the same day that the news was released. Silicon Valley Bank announced a stock offering of $1.75 billion earlier this week, in addition to a separate…
CryptoX – Cryptocurrency Analysis and News Portal Pressure on the U.S. banking system is questioning whether the Fed can push ahead with such an aggressive tightening cycle, analysts at ING said. Source The post Silicon Valley Bank Rocks Crypto and Equity Markets Ahead of Nonfarm Payrolls appeared first on CryptoX. CryptoX Portal
“Silicon Valley Bank (SIVB), another crypto-friendly bank, comes under pressure. The bank is generally regarded as one of the default fallback options for industry participants impacted by the collapse of Silvergate. Operation Chokepoint 2.0 continues tightening its grip,” Ilan Solot, co-head of digital assets at Marex, said in an email, referring to Silvergate Bank, a crypto bank that is closing down, and to a government crackdown in 2013 on banks that did business with the gun sellers. Source
Silicon Valley Bank operating as SVB Financial Group is seeing the worst of its days with its share price plunging by 23.52% in the Pre-Market, following a massive slump of 60.41% on Thursday. Considering the massive selloff in the bank’s stock, SVB Financial Group (NASDAQ: SIVB) is now changing hands at $81.10 in what is regarded as the worst week for the firm in about a decade. The strain in the company’s stock stems from its latest fundraising through $1.75 billion in share sales. The company launched the raise this…