Crypto prices rallied last week following news about the US government’s intervention to ensure Signature Bank and Silicon Valley Bank’s depositors have access to their funds. Prices had taken a hard hit at the start of this month when Silvergate, another crypto-friendly bank, decided to wind down operations.
The ongoing banking crisis took center stage on Crypto Twitter.
Last Monday, hours after New York regulators closed Signature Bank, US leading crypto exchange Coinbase took to Twitter to reveal its exposure to the institution but assured users of normal business operations. The company wrote it had over $245 million locked up in the bank.
Over in the United Kingdom that day, Jeremy Hunt, the country’s Finance Minister, wrote on his handle that they had managed to broker a bailout deal that saw Silicon Valley Bank’s British subsidiary get acquired by HSBC for $1.21 to make whole firms affected by the bank’s collapse.
Yanowitz Shares Alternatives to the Fallen Crypto-Friendly Bank
Crypto podcaster and journalist Jason Yanowitz tweeted on Tuesday a list of alternatives to Silvergate and Signature Bank. Yanowitz mentioned BCB Group, Mercury, Jewel, Series, Customers Bank, and Cross River as crypto-friendly banks.
On that day, crypto venture capitalist Nic Carter reiterated Barney Frank’s statement that the regulators’ move to shut down Signature Bank was intended to send a strong anti-crypto message. According to Carter, these regulators wanted to end the last major pro-crypto bank.
On Wednesday, crypto-friendly Republican House Representative Tom Emmer shared a letter that he reportedly delivered to the Federal Deposit Insurance Corporation (FDIC), accusing the agency of taking advantage of the banking crisis to get rid of financial institutions that cater to crypto businesses.
Meanwhile, blockchain observer (@LookonChain) revealed a crypto trader had made over $1 million after buying discounted USDC tokens worth $16 million. At the time of purchase, USDC was trading at $0.87. The stablecoin had lost its peg following a decline in investor sentiment towards Circle, the USDC issuer.
A Million Dollar Bet
In other news, Coinbase’s ex-CTO Balaji Srinivasen and financial analyst James Medlock entered into a $1 million bet on Saturday over the possibility of US hyperinflation and the likelihood that it would cause Bitcoin price to surge significantly.