- The depegging of the USDC stablecoin was followed by $3 billion in capital outflows and rise in adoption of its rival project TUSD.
- A New York bankruptcy judge denied the US government’s request to delay Binance’s $1 billion acquisition of bankrupt Voyager’s assets.
- BitBoy crypto creator Ben Armstrong threatened to DOX Shiba Inu lead developer Shytoshi Kusama.
US bank runs sent shockwaves through market participants, traders turned to Bitcoin and the “safe haven” narrative made a comeback. Binance’s $1 billion acquisition of bankrupt crypto lender Voyager is back on track with a ruling from a New York bankruptcy judge.
Binance CEO Changpeng Zhao picked TUSD to offer fee-free trade on the BTC/TUSD pair, fueling explosive growth in the stablecoin’s market capitalization. The week’s events took a serious turn with YouTube creator Ben Armstrong threatening to DOX Shiba Inu’s lead developer.
Also read: Bitcoin reserves on exchanges continue climbing amidst rising inflows, is this a sell signal?
US bank runs escalate FUD among market participants
The US bank run saga started on March 10, with the collapse of one of the most tech-friendly banks, Silicon Valley Bank. Federal regulators stepped in to allay fears and limit the risk of contagion. Find a timeline of major events below:
- March 8- Crypto-friendly bank Silvergate capital announced its voluntary liquidation, SVB announced it needed to shore up its balance sheet and sold bond portfolio at a $1.8 billion loss. Also read: Cryptocurrency exchanges reassure saftey after Silvergate bank shuts down
- March 10- SVB failed after a run on deposits. The bank reportedly worked with financial advisers until the morning to find a buyer. By midday, regulators took over the nation’s 16th-largest bank, and the Federal Deposit Insurance Corporation was named the receiver. The failure of the 40-year-old institution became the largest bank crash since the 2008 financial crisis, and it put nearly $175 billion in customer deposits under. First Republic, Signature Bank and Western Alliance felt investors’ uncertainty, and large banks appeared to be insulated from the fallout.
- March 12- Regulators seized Signature bank to curb the spread of the contagion. The Federal Reserve, the Treasury Department and the F.D.I.C. announced jointly that “depositors will have access to all of their money starting Monday, March 13.” The Fed announced its emergency lending program with approval from the Treasury. Also read: Affected by Signature Bank collapse, Okcoin pauses USD wire and ACH deposits, among other services
For more: Can the collapse of Silicon Valley Bank fuel the China coin narrative?
- March 16- The Federal Reserve announced that, as of Wednesday, banks had borrowed $11.9 billion from the emergency loan program. Janet L. Yellen testified before the Senate’s Finance Committee and reassured the public that America’s banks are “sound.” Also read: Former President of FTX.US believes bank meltdowns can reshape crypto for traders
New York bankruptcy judge denied US government’s request to delay Voyager’s asset acquisition
While US regulators continue their crackdown on cryptocurrency firms and institutions, a New York bankruptcy judge denied the US government’s request to delay the $1 billion acquisition of Voyager.
Michael Wiles, a judge in the Southern District of New York said that waiting longer would harm Voyager’s clients and Binance’s $1 billion purchase of Voyager’s assets is set to come into effect on March 20.
Find out more: US government’s request to halt Binance’s acquisition of Voyager turned down, what does this mean for BNB?
When BitBoy Crypto threatened to DOX Shytoshi Kusama
Shiba Inu’s development team recently announced the launch of its layer-2 scaling solution Shibarium’s public beta. While SHIB holders rejoiced, drama unfolded when YouTube content creator Ben Armstrong threatened to DOX lead developer Shytoshi Kusama.
Wait until I dox the founder of $SHIB it’s coming this week. Heck maybe tmrw https://t.co/aAKW39I92G
— Ben Armstrong (@Bitboy_Crypto) March 16, 2023
A tweet that surfaced on crypto Twitter accused Shibarium of being a rip-off of Rinia, sharing screenshots as evidence.
HOLY SHIT. Serious escalation in official $SHIB discord.
— Rancune (@Rancune_eth) March 16, 2023
Shibereum is a ripped chain from Rinia, they forgot to change chain ID.
Mod tells us about manipulation and silencing. $bone $shib $leash## pic.twitter.com/Lw8IDidDqA
Also read: Anxiety in SHIB’s official discord on allegations that Shibarium stole code for their chain
Based on on-chain data from crypto intelligence tracker Glassnode, three major events emerged as a theme this week. The de-pegging of stablecoins, massive exchange outflows and Bitcoin price hitting a nine-month high despite rising BTC reserves on exchanges.
Approximately 0.144% of all BTC, and 0.325% all ETH in circulation was withdrawn from exchange reserves. This resembled the aftermath of the FTX exchange collapse.
BTC and ETH: Percent Balance on Exchanges
On a USD basis, the last month saw over $1.8 billion in combined BTC and ETH value flow out of exchanges.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Bitcoin rebounds as South Korea martial law proves short-lived
Bitcoin recovers slightly, trading above $96,000 on Wednesday, after its recent dip on Tuesday due to the political strife in South Korea. With the crisis seeming to be mostly over, BTC recovered more as the reversal of the martial law restored confidence in crypto markets.
Curve DAO price surges above $1, highest level since April 2023
Curve DAO extends gains by more than 30% on Wednesday, rallying 70% so far this week and reaching levels not seen since April 2023. On Tuesday, the announcement of CRV’s scrvUSD stablecoin launch on the Spectra ecosystem fueled the ongoing rally.
Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Cryptomarket stabilizes after South Korea reverses martial law
Bitcoin hovers near $95,700 on Wednesday, signaling potential weakness as technical indicators suggest a decline, while Ethereum and Ripple stabilize near key levels, hinting at a possible rally following South Korea's reversal of martial law.
Ripple's XRP sees over $4 billion in profit-taking following surge in whale activity
Ripple's XRP is down 5% on Tuesday after news of South Korea declaring martial law sparked a surge in selling activity and significant profit-taking among investors. However, whales have stepped up buying pressure as the remittance-based token looks to stage a recovery.
Bitcoin: A healthy correction
Bitcoin (BTC) experienced a 7% correction earlier in the week, dropping to $90,791 on Tuesday before recovering to $97,000 by Friday. On-chain data suggests a modest rebound in institutional demand, with holders buying the dip. A recent report indicates BTC remains undervalued, projecting a potential rally toward $146K.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.