• Latest
  • Trending
  • All
Bank sector stress may provide a bullish case for cryptocurrencies. Here’s how

Bank sector stress may provide a bullish case for cryptocurrencies. Here’s how

March 18, 2023
Elizabeth Warren Blasts Bitcoin Mining For Hurting American Wallets And Enriching Crypto Execs By Benzinga

Venezuela authorities seize Bitcoin mining machines from notorious prison  By Crypto.news

September 24, 2023
Borroe.Finance and Dogecoin on the rise in Q4 2023

Borroe.Finance and Dogecoin on the rise in Q4 2023

September 24, 2023
Looking back: 2022 on ethereum.org

Development update #4 – ethereum.org

September 24, 2023
Jak wiele będziesz musiał dziś zapłacić – Bitcoin Cash, Cardano, Ripple, Litecoin oraz EOS? – kryptowaluty 23 września

Jak wiele będziesz musiał dziś zapłacić – Bitcoin Cash, Cardano, Ripple, Litecoin oraz EOS? – kryptowaluty 23 września

September 24, 2023
YENTEN (YTN) Falls 0%, Outperforms the Crypto Market Saturday

YENTEN (YTN) Falls 0%, Outperforms the Crypto Market Saturday

September 24, 2023
Bitcoin (BTC) Price Gearing Up for October Rally, Could Shoot to $37,000

Bitcoin (BTC) Price Gearing Up for October Rally, Could Shoot to $37,000

September 23, 2023
AI code-generation software: What it is and how it works

AI code-generation software: What it is and how it works

September 23, 2023
Mining Bitcoin Or Ethereum Can Be Daunting, Bitcoin Spark Ends Mining Fears

Mining Bitcoin Or Ethereum Can Be Daunting, Bitcoin Spark Ends Mining Fears

September 23, 2023
Trader Says Dogecoin Rival Has Further Upgrade Potential, Updates Outlook on Bitcoin and Worldcoin

Trader Says Dogecoin Rival Has Further Upgrade Potential, Updates Outlook on Bitcoin and Worldcoin

September 23, 2023
Ethereum’s prospects shift: SEC acknowledges new spot ETF application

Ethereum’s prospects shift: SEC acknowledges new spot ETF application

September 23, 2023
A taxa de queima da Shiba Inu (SHIB) dispara 350%; Litecoin (LTC) e InQubeta (QUBE) tornam-se as principais moedas para observar

A taxa de queima da Shiba Inu (SHIB) dispara 350%; Litecoin (LTC) e InQubeta (QUBE) tornam-se as principais moedas para observar

September 23, 2023
BTSE Token (BTSE) Falls 0.01%, Underperforms the Crypto Market Saturday

BTSE Token (BTSE) Falls 0.01%, Underperforms the Crypto Market Saturday

September 23, 2023
Sunday, September 24, 2023
DLT EMPIRE
  • Home
  • Bitcoin
  • Ethereum
  • Blockchain
  • Altcoin
  • Crypto Mining
  • Dogecoin
  • Litecoin
  • Market
No Result
View All Result
DLT EMPIRE
No Result
View All Result
Home Crypto Mining

Bank sector stress may provide a bullish case for cryptocurrencies. Here’s how

by Cuevas Antonio
March 18, 2023
in Crypto Mining
0
Bank sector stress may provide a bullish case for cryptocurrencies. Here’s how
491
SHARES
1.4k
VIEWS
Share on FacebookShare on Twitter


By Frances Yue

Hello! Welcome back to Distributed Ledger. This is Frances Yue, crypto reporter at MarketWatch.

A lot has happened during the past week — California’s Silicon Valley Bank (SIVB) collapsed in the second-largest bank failure in U.S. history, and New York-based Signature Bank (SBNY) was shut down by state regulators. Both happened days after crypto-friendly Silvergate Bank (SI)said it would wind down its operation.

The Federal Reserve on Sunday announced an emergency loan program to backstop depositors at both institutions and across the banking system.

Still, investors remain worried about other banks. First Republic Bank(FRC)’s shares lost about one-third of their value Thursday after Bloomberg reported that the bank is exploring its strategic options, including a potential sale of the company. The shares steadied after the Wall Street Journal reported that the biggest banks in the U.S. are discussing a joint rescue for the lender.

Meanwhile, Credit Suisse (CSGN.EB) on Thursday said it would borrow up to $54 billion from the Swiss central bank toboost its liquidity after its stock and bonds plummeted Wednesday.

Amid such stress in the banking system, bitcoin staged a notable rally, surging over 30% in three days from around $20,000 Sunday to above $26,000 Tuesday, before it pulled back slightly and traded slightly below $25,000 Thursday, according to CoinDesk data.

As always, find me on Twitter at @FrancesYue_ to share any thoughts on crypto, this newsletter, or your personal stories with digital assets.

Bullish catalyst for bitcoin?

The collapse of several banks recently highlights the potential use cases for blockchain technology, said Akbar Thobhani, chief executive at sFOX.

“What blockchain does, is it brings two people that really don’t have a reason to trust each other to be able to transact, knowing that the transaction will get done,” Thobhani said in a call.

“Generally, banks serve that need where you trust the bank to hold your money and be able to transact. But if that trust wavers even slightly, we saw what happens to the banks in less than 48 hours,” said Thobhani.

Specifically, bitcoin showed resilience in the recent turmoil, which may support the argument that though the crypto is not an inflation hedge, it is a hedge against “monetary irresponsibility,” analysts at crypto trading firm QCP Capital wrote in a Thursday note.

Thobhani attributed bitcoin’s recent rally in part to some investors’ confidence in banks being harmed.

Over the past weekend, some investors are unsure that which banks are safe. “I think a lot of people decided they would go in crypto so they’d be able to withdraw the coins on the weekend if they needed to, as opposed to waiting until Monday morning when the banks come online with all the uncertainty,” Thobhani said.

Crypto trades 24 hours a day, seven days a week, while banks are usually closed and do not process payments over weekends and on federal holidays.

To be sure, bitcoin is still highly volatile — the crypto prices are down more than 60% from its all-time high in 2021, according to CoinDesk data.

And the crypto industry is not isolated from troubles in the banking sector.

Collapsed Silvergate, Signature and Silicon Valley Bank were all once considered among the most crypto-friendly banks in the U.S., though Signature had been cutting its crypto-related deposits after the collapse of exchange FTX in November.

“The landscape [of banking for crypto] has definitely changed,” said Bobby Zagotta, chief executive at Bitstamp USA.

The collapse of Signature and Silvergate may make it more difficult for institutions to purchase cryptocurrencies with fiat currencies, and restrict liquidity across crypto trading platforms. MarketWatch’s Anushree Dave and I have written more about it here.

Crypto in a snap

Bitcoin rallied 17.6% in the past week and was trading at around $24,750 on Thursday, according to CoinDesk data. Ether gained 12% in the same period to around $1,662.

Biggest gainers  Price  %7-day return 
Halo Coin        $0.06  92.7% 
Conflux          $0.29  53.7% 
Stacks           $0.89  42.7% 
SingularityNET   $0.49  36.9% 
The Graph        $0.16  24.5% 
                        Source: CoinGecko 
Biggest Decliners  Price    %7-day return 
Maker              $726.95  -16.8% 
Huobi              $4.09    -15.4% 
Dash               $53.09   -9.1% 
Frax Share         $8.24    -7.9% 
OKC                $23.77   -7.6% 
                            Source: CoinGecko 

Crypto companies, funds

Shares of Coinbase Global Inc. (COIN) went up 16% for the week to around $67.33. MicroStrategy Inc. (MSTR) gained 14.4% thus far on the week, to $241.25.

Crypto mining company Riot Blockchain Inc. (RIOT) rallied 27%, to $7.04 as of Thursday. Shares of rival Marathon Digital Holdings Inc. (MARA) surged 39% to $7.65 over the past week. Ebang International Holdings Inc. (EBON) traded 12% higher over the past week to around $6.74.

Overstock.com Inc. shares (OSTK) edged down 0.9% to $17.93 over the week.

Shares of Block Inc. (SQ), formerly known as Square, gained 2.6% to $75.69 for the week thus far. Tesla Inc. (TSLA) shares rose 7% to $184.99.

PayPal Holdings Inc.’s (PYPL) stock dipped 2.2% over the week to trade at around $74.25. Nvidia Corp.’s (NVDA) went up 8% to $253.06 for the past week.

Advanced Micro Devices Inc. (AMD) shares went up 14% to $96.03 for the week.

Among crypto funds, ProShares Bitcoin Strategy (BITO) rallied 25% over the week to $15.36 Thursday, while counterpart Short Bitcoin Strategy ETF (BITI) plunged 24% to $24.03. Valkyrie Bitcoin Strategy ETF (BTF) surged 25% over the past week to $9.81, while VanEck Bitcoin Strategy ETF (XBTF) jumped 25% to $25.

Grayscale Bitcoin Trust (GBTC) advanced 21% over the past five days to $14.06 on Thursday.

-Frances Yue

Must-reads

This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.

 

(END) Dow Jones Newswires

03-18-23 1505ET

Copyright (c) 2023 Dow Jones & Company, Inc.



Source link

Tags: BankbullishcaseCryptocurrenciesHeresprovideSectorstress
Share196Tweet123Share49
Cuevas Antonio

Cuevas Antonio

  • Trending
  • Comments
  • Latest
ChatGPT is Being Used to Make ‘Quality Scams’

ChatGPT is Being Used to Make ‘Quality Scams’

March 20, 2023
Rise of AI-Powered Cheating: Challenges and Solutions for Educators

Rise of AI-Powered Cheating: Challenges and Solutions for Educators

March 20, 2023
Former FTX US President Reportedly Quit After ‘Protracted Disagreement’ With Bankman-Fried

Former FTX US President Reportedly Quit After ‘Protracted Disagreement’ With Bankman-Fried

April 10, 2023
Silicon Valley Bank: Bitcoin investors in panic as market goes sideways

Silicon Valley Bank: Bitcoin investors in panic as market goes sideways

0
24 Crypto Terms You Should Know

24 Crypto Terms You Should Know

0
Bitcoin, Ethereum, Dogecoin Rally As Team Biden Cushions SVB Blow

Bitcoin, Ethereum, Dogecoin Rally As Team Biden Cushions SVB Blow

0
Elizabeth Warren Blasts Bitcoin Mining For Hurting American Wallets And Enriching Crypto Execs By Benzinga

Venezuela authorities seize Bitcoin mining machines from notorious prison  By Crypto.news

September 24, 2023
Borroe.Finance and Dogecoin on the rise in Q4 2023

Borroe.Finance and Dogecoin on the rise in Q4 2023

September 24, 2023
Looking back: 2022 on ethereum.org

Development update #4 – ethereum.org

September 24, 2023

Recent News

Elizabeth Warren Blasts Bitcoin Mining For Hurting American Wallets And Enriching Crypto Execs By Benzinga

Venezuela authorities seize Bitcoin mining machines from notorious prison  By Crypto.news

September 24, 2023
Borroe.Finance and Dogecoin on the rise in Q4 2023

Borroe.Finance and Dogecoin on the rise in Q4 2023

September 24, 2023
Looking back: 2022 on ethereum.org

Development update #4 – ethereum.org

September 24, 2023

Categories

  • Altcoin
  • Altcoin News
  • Altcoins
  • Artificial Intelligence
  • Bitcoin
  • Blockchain
  • Blockchain Games
  • Business
  • Crypto
  • Crypto Mining
  • Cryptocurrencies
  • Cryptocurrency
  • Culture
  • Defi
  • Dogecoin
  • Economy
  • Education
  • Entertainment
  • Ethereum
  • Featured
  • Gambling
  • Governance
  • Health
  • Lifestyle
  • Litecoin
  • Market
  • News
  • Uncategorized
  • Web 3.0
  • World

Converter

Cryptocurrency Prices by Coinlib

© 2023 Dlt Empire | All Rights Reserved

No Result
View All Result
  • Home
  • Bitcoin
  • Ethereum
  • Blockchain
  • Altcoin
  • Crypto Mining
  • Dogecoin
  • Litecoin
  • Market

© 2023 Dlt Empire | All Rights Reserved