Banks and Crypto – What’s the Buzz?

So there’s been a ton of news about the failure of Silicon Valley Bank (SVB) and Signature Bank in the news. Let me tell you why it doesn’t matter.

Even though a bank failure is something that shouldn’t be taken lightly, the troubled banks failing are not mega banks like Citi, JP Morgan, or Wells Fargo. As long as one of these banks don’t go down we should be good. Unless all regional banks failed at the same time.

In addition, the government has stepped in and guaranteed all deposits for the troubled banks and the FDIC is using some of the insurance funds that all banks have to pay into to help out so no tax payer money is being used.

First Citizen Bank is buying a large portion of SVB’s deposits which sent the stock soaring.

Bitcoin has also been soaring due to the shakiness of the financial system. Some investors think Bitcoin will be stable in the event of financial system turmoil.

Long-term rates have come down with questions around if the Fed can still keep raising rates due to financial instability so the 10 year and mortgage rates have come down as well.