Silvergate BottomWe've seen massive capitulation and it has formed a harmonic shark pattern in the process.
It will likely go sideways from here initially but generally we already had our first change of structure under wyckoff accumulation.
Its just a matter of time before this fully reverses.
If you missed bitcoin a decade ago, this is your next bitcoin.
Our trigger is RSI trendline break or Wyckoff Accumulation breakout, which ever comes first.
Not a financial advise.
Silvergatebank
SI Silvergate Capital going to $0???If you haven`t sold crypto`s favorite bank, SI Silvergate, here:
Then you should know that Silvergate Capital Corp, the parent company of Silvergate Bank, announced its closure and liquidation of assets on Wednesday.
Shortly after, New York state banking regulators closed down Signature Bank to prevent the fallout from the failure of Silicon Valley Bank.
Lawyers representing plaintiffs in a class action lawsuit by FTX customers against 18 defendants, including Signature and Silvergate, claim that these events will severely limit the amount of money they can access if they can prove the banks are responsible.
Kerry Miller of Fishman Haygood, whose firm filed the lawsuit in Miami federal court, stated that FTX customers may have to rely on insurance policies covering the banks' top executives and board members since these events impose another hurdle.
Haven`t seen any bidders for it, or other banks supporting SI SIlvergate.
Most likely to file for bankruptcy and go to $0.
Looking forward to read your opinion about it.
Eurozone banks now caught the coldAs I mentioned before, the contagion will spread like wildfire because the banking system are so intertwined.
We now see Deutsche Bank potentially get caught in the onslaught. Their share tanked by approximately 15% last Friday.
After Credit Suisse got obliterated and UBS come to pick up the remains with assistance from SNB ($100 Billion Swiss Franc), their share price now trade below $1.
Liquidity injection did nothing to help Credit Suisse. I see this bailout as helping the top 10% to rescue their money and let the rest die.
It is always the case. Silicon Valley Bank just gap down and declining more, Signature Bank not showing signs of recovery at all and the regulators/leaders of US still say everything is okay.
One thing to bare in mind is that, all the country's leaders have a fiduciary duty to not cause public panic, even though they have a gun to their head.
So, what ever you read right now in the mass media by Janet Yellen, Jerome Powell, Bank CEOs and other Central Bank chairperson, is deemed untrustworthy.
As mentioned before, the next sector that might get hit will be real estate, in particular commercial real estate.
White collar layoffs on-going + high inflation + high cost of borrowing + tightening lending requirement + high delinquency in rental/mortgage payments
+ work from home/hybrid preference = commercial real estate crash. If this crash happens, Commercial Mortgage Backed Securities will come crashing down too, which will bring down the Big Banks.
There will be flight to safety. Gold and silver will continue to rise, no doubt about that. US Stock market will like rally short term as Eurozone and Switzerland is on shaky grounds.
US Dollar may see a short term bullishness as sentiment on Euro bloc is hitting the headlines. Massive riots in France due to Macro increasing retirement age, will also be priced-in and act as catalyst.
APAC region could potentially see great alternative to store value and protect capital. APAC markets, as I always said, is more conservative and resilient.
By Sifu Steve @ XeroAcademy
SVB, Silvergate Collapse & Affect on CryptomarketHi Traders, Investors and Speculators of the Charts 📈📉
Ev here. Been trading crypto since 2017 and later got into stocks. I have 3 board exams on financial markets and studied economics from a top tier university for a year.
In a twist of events, an incident that happened within the banking realm created chaos for the crypto realm. I bet you didn't have that on your bingo cards for 2023...
In the past few weeks, there have been two significant bank failures in the United States that have sent shockwaves throughout the financial world. The collapse of Silicon Valley Bank and Silvergate Bank has sparked concerns about the stability of the banking system and the future of the crypto industry. The failure of these banks highlights the fragility of the financial system and the challenges faced by institutions that operate in high-risk sectors like tech and crypto.
Silicon Valley Bank ( SVB ) was closed by the FDIC on March 9 due to its heavy losses caused by the downturn in technology stocks and the U.S. Federal Reserve's aggressive plan to increase interest rates.
The Federal Deposit Insurance Corporation (FDIC) is an independent agency created by the US Congress in 1933 to maintain stability and public confidence in the nation's financial system. The FDIC provides deposit insurance that guarantees the safety of deposits in member banks, up to a certain limit. In the event that a member bank fails, the FDIC will step in to insure deposits, provide assistance to depositors, and liquidate the failed bank's assets. The FDIC also regulates and supervises member banks, as well as conducts research and analysis on the banking industry.
Silicon Valley Bank bought bonds using customers' deposits, but the value of those investments fell as interest rates rose. This is usually not a problem for banks, but Silicon Valley Bank's customers were largely startups that needed cash. Venture capital funding was drying up, and companies were tapping their existing funds deposited with Silicon Valley Bank, which was at the center of the tech startup universe. In response to this liquidity crisis, SVB sold a $21bn bond portfolio at a loss of $1.8 billion. The bank attempted to fill the solvency hole with a combined equity offering of $2.25bn on March 8, but the attempt failed. This is the largest failure of a financial institution in the United States since Washington Mutual collapsed more than a decade ago. The closure of SVB had an immediate effect on some startups that had ties to the bank, as they scrambled to pay their workers and feared having to pause projects or lay off employees until they could access their funds. SVB , the 16th largest bank in the US, had assets of $209 billion, with more than 50% of its investments tied up in long-term securities, including exposure to the Silicon Valley tech and health startup world. The bank's sudden collapse has raised questions about its risk management practices, and the impact of its closure on its clients, who are largely startups and wealthy tech workers. The bank's large uninsured deposits and exposure to high-risk sectors like tech and crypto contributed to its downfall.
But SVB isn't the only one... Silvergate Bank, which has been a significant player in the crypto world, has announced that it is closing and returning deposits. The bank's holding company, Silvergate Capital Corporation, stated that the decision was made "in light of recent industry and regulatory developments." The closure follows the loss of one billion dollars in a quarter after customers withdrew $8.1 billion, and a subsequent filing in March revealing even worse financials. The closure of Silvergate Bank is concerning for the crypto industry, as it may lead to companies turning to less regulated institutions for their banking needs, potentially making the space even riskier. Coinbase, Crypto.com, and Paxos have already started moving away from the bank. The collapse of the bank will likely draw scrutiny from lawmakers who are concerned about the crypto contagion affecting the traditional financial sector. The Silvergate Exchange Network, which allowed crypto exchanges like Coinbase, Gemini, and Kraken to move money between themselves and other institutions, has also been shut down. The bank's financial struggles have been ongoing for some time, with some of its high-profile clients like FTX and Genesis also experiencing challenges. Silvergate's collapse raises concerns about the future of the crypto industry, as companies may turn to less regulated institutions for their banking needs, potentially making the space even riskier for everyone involved. The bank's failure is also likely to draw scrutiny from lawmakers concerned about the potential contagion of the crypto industry on the traditional financial sector.
Late Friday night Coinbase, a popular cryptocurrency exchange, announced that it would suspend conversions for the USDC stablecoin. This led to a rush of people trying to sell their USDC holdings, causing it to depeg from its value of $1 and trade as low as $0.87 before recovering to $0.92. Another stablecoin, Dai, also depegged and experienced a high volume of trading. Stablecoins are important in the cryptocurrency market as they provide a way for traders to move funds between different exchanges or cryptocurrencies without having to convert back to fiat currency. They are also used as a store of value by some cryptocurrency investors who prefer a more stable asset compared to the volatility of Bitcoin or other cryptocurrencies. If stablecoins depeg permanently, it could lead to a loss of confidence in their stability and reliability. This could potentially cause a sell-off of stablecoins and a shift towards other assets perceived as more stable, such as traditional fiat currencies.
But before we panic too hard and FUD out, it's important to note that the impact of this crisis on cryptocurrencies such as alts and Bitcoin would depend on the severity and duration of the stablecoin depegging event, as well as other market factors such as investor sentiment and regulatory actions. In the past, there have been instances of stablecoins temporarily depegging from their underlying assets without significant impact on the broader cryptocurrency market. One notable example of a stablecoin depegging in the past is the case of Tether (USDT) in 2018. Tether is a stablecoin that is pegged to the value of the US dollar , with each USDT token representing one US dollar . In October 2018, Tether's price dropped below the $1 peg on several cryptocurrency exchanges, leading to concerns about the stability of the stablecoin. The depegging was attributed to a variety of factors, including regulatory pressures, concerns about Tether's reserves, and a general market downturn. The depegging led to a sell-off of Tether and a shift towards other stablecoins such as USD Coin ( USDC ) and TrueUSD (TUSD), which saw increased demand as traders and investors sought more reliable alternatives. Despite the depegging of Tether, the broader cryptocurrency market did not experience a significant impact, with Bitcoin and other cryptocurrencies largely unaffected. However, the incident highlighted the potential risks and uncertainties associated with stablecoins and their reliance on centralized institutions to maintain their pegs.
In terms of price action for the immediate term, the Tether (USDT) depegging event in 2018 did have some impact on the cryptocurrency market prices, although the impact was relatively limited and short-lived. Following the depegging of USDT, there was a brief sell-off of Tether and a shift towards other stablecoins such as USD Coin ( USDC ) and TrueUSD (TUSD). This led to increased demand for these stablecoins, which helped to maintain their pegs to the US dollar . However, the broader cryptocurrency market, including Bitcoin , was largely unaffected by the Tether depegging. While there was some initial volatility and uncertainty, the market quickly stabilized and resumed its upward trend.
💭The collapse of Silicon Valley Bank is the second-largest bank default in U.S. history and puts the golden trifecta rule of banking (liquidity, solvency, and profitability) into review. This failure reminds us of the unintended consequences of unorthodox monetary policies, pandemic remediation measures, excessive leverage, and democracy eroding rulings. SVB had significant exposure to long-term securities and the Silicon Valley tech and health startup world. The bank's uninsured deposits pose a problem but insured deposits will be available as soon as Monday.
The collapse of Silicon Valley Bank and Silvergate Bank underscores the need for stricter regulatory frameworks and tighter risk management practices in the financial industry. The failures also highlight the importance of diversification and risk mitigation strategies for banks and their clients. As the financial industry continues to evolve, it is essential that institutions keep pace with the changes and adapt their practices to ensure their stability and resilience in the face of future challenges.
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CryptoCheck
DXY is now Risk On scenario now as banking sector gets crushed!Sharks are smelling blood in the banking sector and they are loading up to strike. Last week, we saw Silvergate Bank collapse and shortly after that, Silicon Valley bank (SVB).
Within 48 hours, 2 moderate size regional banks went under. Last Friday, several banks tanked at least 20% and few were halted due to massive shorting.
The house of cards are falling and this situation looks like a Lehman Brother's. Contagion will spread to vulnerable sectors such as housing and auto.
Jerome Powell wants to further increase interest rates, which will cause more destruction. Investors will be spooked and wanting to pull their money out of Dollar debt system and investments.
2 year US Treasury Bond yields dropped off the sky. With US national debt being so incredibly high at $32 Trillion and counting, US Treasuries are also no longer safe havens. Gold and Crypto perhaps?
DXY just broke new lows on Daily timeframe. The bear market rally is over I believe and with the catalyst of collapsing banking sector with its contagion expectations into other sectors, DXY is Risk On now, which is Bearish.
By Sifu Steve @ XeroAcademy
Why SI Silvergate Capital Corporation Collapsed ? If you haven`t bought puts here:
Then you should know that last week, Silvergate's stock plunged by up to 45% following the company's announcement that it would delay filing its annual report due to ongoing investigations by various regulatory bodies, including the U.S. Department of Justice.
This led major players in the crypto industry, including Coinbase and Paxos, to sever ties with Silvergate.
The second largest bank serving digital assets companies, Silvergate, announced that it would wind down its operations on March 8.
Analysts attributed the decline to a loss of trust in the crypto industry following the FTX meltdown, as well as concerns raised by short sellers primarily on Twitter.
Silvergate primarily serviced cryptocurrency firms, including FTX, which ultimately failed.
I am still bearish on the outlook of this stock!
Looking forward to read your opinion about it!
🅱️Silvergate Bank ShutsDown, Bullish Signal? Bitcoin UnaffectedA development that just last year would certainly crash Bitcoin down to new lows, today only produces a small scratch on Bitcoin's price.
Pressure from all around.
Bad news: Inflation, the SEC fighting everybody in the Crypto-industry in order to advance their personal agenda, companies going bankrupt, all hell breaking loose... Bitcoin drops by $300 dollars.
Seriously, this is a major bullish development.
The sentiment continues to get worse by the hour yet Bitcoin seems unaffected.
This week is the third week that Bitcoin has been red since 13-Feb.
In 3 weeks Bitcoin drops by a total of 14% or just about $3,608 USD... Think about it.
Back in November 2021 in 3 weeks Bitcoin dropped by 37% or $24,709 USD, big difference. In fact, it is normal to see Cryptocurrencies correct by 30%, 40%, 50%, 62% and even up to 78% after a bullish wave... The fact that we are having this strong resilience with so much bad sentiment and bad news is the strongest bullish signal we can get.
- From March 2022 to June 2022 Bitcoin drops by 63%.
- Just one candle in November 2022 produced a 26% drop...
✔️ Fast forward to 2023.
The first two bearish weekly close happened late January and early February, not even relevant and the entire drop was recovered the following week plus a new high, bulls win.
✔️ Fast forward to the present day.
Bitcoin has been dropping? No, consolidating for three weeks... Yes, this is consolidation... After consolidation we will have another leg up.
Just watch!
Remember to people saying "No volume!!!"?
Notice the last three red weeks, no volume!
I am calling my friends... It is time to buy.
Let's reverse this thing!
Namaste.
