How crypto market chaos affected US bank stocks
US banks Silvergate, SVB, and Signature are the latest dominoes to tumble in crypto’s market chaos. Now, more US banks are floundering.
Cryptocurrency news by Protos · Protos
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Show Notes
The current market chaos in US banking, tech, and cryptocurrency is hard to summarize without using the common moniker FUD (fear, uncertainty, and doubt) in a very literal sense.
After the pandemic, the Federal Reserve raised interest rates in the US. Inflation went up; interest rates continued to rise. This flew in the face of years of enjoying low-to-no interest rates, first introduced with the goal of ensuring a stable economy.
However, cryptocurrency markets tumbled when FTX was identified as a fraudulent actor in November. Its main banking partner, Silvergate, served most prominent crypto firms — but when it began to experience a credit and liquidity crunch, depositors exited en masse and loan markets dried up.
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