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.
April 28,2024
Bitcoin Floats Around $64K As Altcoins See Red
April 27,2024
Eminem Gets Involved With Crypto Through New Ad
April 26,2024
ConsenSys Fights Back Against The SEC And Initiates Legal Action
April 26,2024
Popular Crypto Influencer Sentenced To Seven Years In Prison
April 25,2024
Solana Community Looks Forward To Much Needed Update
April 25,2024
Bitcoin Makes History By Becoming The Scarcest Asset In The World
April 24,2024
HBAR Skyrockets After BlackRock Successfully Tokenizes MMF On Hedera
April 24,2024
Jack Dorsey Will Tap Into Africa For New Bitcoin Mining Initiative
April 23,2024
12 Solana Meme Coin Projects Listed As Scams By ZachXBT
April 23,2024
Drama At The SEC As Two Lawyers Accused Of Cheating In Crypto Case
April 22,2024
Crypto Community Highly Concerned About Section 702 Renewal
April 22,2024