The March 10th collapse of Silicon Valley Bank (SVB) sparked FUD (Fear, Uncertainty, and Doubt) throughout the crypto community, prompting many to return to crypto roots, namely, reviving the Bitcoin (BTC) white paper published just weeks after the 2008 Lehman Brothers meltdown.
There is an entire generation of builders who only know about Lehman and the financial crisis and dismiss Bitcoin. Now though, their eyes are wide open, said Messari Founder and CEO Ryan Selkis.
Some attribute this disaster to rising interest rates within the U.S. Over the last year, the Federal Reserve raised its benchmark rate to more than 4.5%, the highest level since 2007. In the United States, the inflation rate was 6.4% in January.
The failure of Silicon Valley Bank has also impacted numerous crypto and tech companies. SVB was actually about to close its doors when Circle, the issuer of USD Coin (USDC), initiated a wire transfer to withdraw its funds.
However, Circle revealed that it was unable to withdraw $3.3 billion of its $40 billion in SVB reserves, resulting in a sell-off and the price of the stablecoin falling below its $1 peg. Other stablecoins such as BUSD and USDT have maintained their 1:1 peg with the U.S Dollar, for the time being at least.
Crypto Community Returning To Its Roots After SVB Goes Down


Subscribe to the CryptoWeekly Newsletter
Get the top stories, funding deals, technical analysis, cryptocurrency jobs and much more delivered to your inbox, every Monday morning.

December 07,2023
French Bank Becomes First Institution To Issue A Stablecoin On Ethereum

December 07,2023
Binance Plea Agreement Finally Approved By District Judge

December 06,2023
Huge Security Vulnerability Discovered By Thirdweb

December 06,2023
Qatar May Buy A Massive Amount Of Bitcoin Soon

December 05,2023
El Salvador BTC Advisor Shares Plans For Argentina

December 05,2023
BTC Spot ETF Application Updated By BlackRock

December 04,2023
Solana And Ethereum Can Coexist With One Another

December 04,2023
Bitcoin Soars Past $40K As Bull Run Seemingly On The Horizon

December 03,2023
Cosmos Mainnet Is The New Location For USDC Minting

December 02,2023
Popular Swiss Bank Changes Its Name And Shifts Focus To Crypto

December 01,2023
Bitcoin Rockets Past $38K As Other Markets Steadily Improve

November 30,2023