In the past week, the encryption market has experienced ups and downs, and the banking crisis triggered by Silicon Valley Bank has been transmitted to the encryption market. Yesterday, market sources said that the US government will issue an official announcement on the Silicon Valley Bank incident to avoid further impact. At present, the specific situation is still unknown, but the impact of this incident is so great that it may affect multiple markets.

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The cow returns quickly?

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(As of 16:00 today, Bitcoin is still going up.)

At the same time, mainstream currencies all ushered in gains of varying magnitudes. Ethereum once broke through 1600 USDT, a 24-hour increase of more than 7%. BNB broke through 300 USDT and once touched 310 USDT, a 24-hour increase of more than 10%.

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But more voices believe that the rise in the market comes from the confidence boost brought about by macro news.

The Federal Reserve issued a document today stating that with the approval of the Minister of the Treasury, the Ministry of Finance will allocate 25 billion U.S. dollars from the Exchange Stabilization Fund as emergency loan support. The new financing program will be provided through the creation of the new Bank Term Financing Program (BTFP), which provides loans of up to one year to banks, savings associations, credit unions and other qualified depository institutions, backed by U.S. Treasury, agency debt and mortgages Securities and other eligible assets are collateral. These assets will be valued at par and BTFP will be an additional source of liquidity for high-quality securities, eliminating the need for institutions to quickly sell these securities during times of stress.

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At 11:30 a.m. on Monday (11:30 p.m. Beijing time), the Federal Reserve will hold an emergency private meeting of the Board of Governors of the Federal Reserve System to evaluate and determine the advance and discount rates charged by the Federal Reserve Bank.

Of course, regardless of the underlying motivation, strong buying is clearly the direct cause of the market's rise. Today, CZ tweeted that considering the changes in stablecoins and banks, Binance will convert the remaining "$1 billion industry recovery plan" funds from BUSD to native cryptocurrencies, including BTC, BNB and ETH. Shortly after, 985,088,975 BUSD (worth $981 million) were transferred from the Binance Industry Recovery Fund to Binance.

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Circle has weathered the crisis?

Although not yet into Bank of America hours. But Circle has said publicly that it has weathered the crisis with $3.3 billion in reserves at Silicon Valley Bank.

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All depositors at Silicon Valley Bank and Signature Bank will be compensated, according to a joint statement from the U.S. Treasury Department, the Federal Reserve Board and the FDIC. All deposits will be in place when banks open for business on Monday morning. However, USDC can still maintain a stable exchange rate of 1:1 with the US dollar.

Circle promises that users will have automated USDC minting and redemption through Cross River Bank, effective March 13. And for Circle, the remaining reserves are also safe and secure. Circle said it would transfer the remaining SVB deposits to BNY Mellon.

But when the risk of thunderstorms gradually subsided, the market turned around again.

At about 16:00 this afternoon, Bitcoin went down again and fell below 22,000 USDT.

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The fierce battle between bulls and bears, has the turning point already appeared?

With the rapid spread of the impact of the Silicon Valley bank explosion, US President Biden tweeted on the evening of the 12th local time to speak out about the bank trust crisis in order to boost American confidence.

Biden first retweeted the US "New York Times" report and tweeted, "At my direction, Secretary Yellen and my National Economic Council Director worked with banking regulators to resolve the problems of Silicon Valley Bank and Signature Bank. I am very happy Glad they reached a solution that protects workers, small businesses, taxpayers and our financial system."

He then went on to say, "The American people and American businesses can rest assured that their bank balances will come when they need them." He also said, "I am firmly committed to holding those responsible for this mess fully accountable." , and continue working to strengthen the oversight and regulation of the big banks so we don’t end up in this situation again.”

And for the banking system, the worsening situation doesn't seem to be getting better. Shares of First Republic Bank fell more than 60% pre-market today. First Republic Bank founder Jim Herbert and CEO Mike Roffler said the bank's capital and liquidity position is very strong and its capital remains well above regulatory thresholds.

Several banks, including Goldman Sachs, see the Fed moving more dovishly toward further tightening of monetary policy because they fear further damage to the banking system.

And when we look back at the history of Bitcoin, it is not difficult to find that the current encryption market may have reached a rather "entangled" historical moment.

Whenever there is a major crisis in TradFi, Bitcoin's decentralized narrative and hedging properties become sexy again, and are more concerned by the mainstream world. Just like the historical cycle experienced by previous rounds of bulls and bears, some people believe that the potential crisis of the banking system may be the starting point of the next round of bull market:

Arthur Hayes, the co-founder of BitMEX, is optimistic about the current market. Hayes tweeted that he believes the market is ready to enter bullish mode following the recent turmoil caused by the SVB debacle and USDC de-anchoring.

Where will the market go? Will the banking crisis continue to ferment tonight? Odaily will follow up the report.