• Silicon Valley Bank is in the process of filing bankruptcy, but bitcoin and other crypto assets are seeing a surge in value.
• Coinbase’s stock has risen 9 percent and Balaji Srinivasan believes users should buy BTC before the banking system goes haywire.
• Nikolaos Panigirtzoglou explains that the Fed’s bank term funding program is likely to be big.
Silicon Valley Bankruptcy
Silicon Valley Bank is currently in the process of filing for bankruptcy – a situation not unlike the FTX debacle from five months ago. This time, however, it appears to have had an opposite effect on bitcoin and its altcoin counterparts.
At present, BTC – the world’s top cryptocurrency by market capitalization – has shot past $27,000 per coin, with many analysts believing $30K could be next if current trends keep up. Over the last few weeks alone, BTC has seen an increase of 30%. Other crypto-based stocks like Coinbase have also seen significant increases; America’s largest digital currency exchange has seen its stock jump nine percent since then.
Balaji Srinivasan’s Statements
Coinbase CTO Balaji Srinivasan has warned users to buy as much BTC and crypto as they can before what he believes will be a case of hyperinflation due to actions taken by central banks and bank regulators. He says: “The central bank, the banks, and the bank regulators have bankrupted all of us. They hid their insolvency from you, the depositors, and they’re about to print $2 trillion to hyperinflate the dollar.“
Nikolaos Panigirtzoglou’s Explanation
Nikolaos Panigirtzoglou – who works at Matrix Port as head of research and strategy – explained that this particular case might lead to heavy usage of the Federal Reserve’s bank term funding program or BTF (which acts as a loan for banks). He said: „The usage of [the] Fed’s BTF program is likely to be big.“
Markus Thielen’s View
Markus Thielen – also from Matrix Port – agreed with these sentiments saying: „The entire banking system is lying to you about solvency.“ He suggested that people should get their coins off exchanges immediately so they don’t suffer losses due to hyperinflation caused by too much printing of money by central banks.