As the Fed expected to raise interest rates by 50 basis points, the global capital market fell into a liquidity crisis. Silvergate and Silicon Valley Bank (SVB) went bankrupt one after another, and BTC fell below the 20,000 mark yesterday. Today, the deposit funds of major institutions in Silicon Valley Bank were once again circulated in the market. A16z and USDC were the first to bear the brunt. The whole market fell into panic. In just two days, the whole market was in a bloodbath, which was somewhat similar to the situation on May 19. Today, the market is short-selling and panic has reached a high point.
Let me briefly talk about Silicon Valley Bank, which is one of the top 20 banks in the United States. This bank, which grew up in California, is not a traditional branch bank as everyone knows. It makes profits by attracting deposits and loan interest rate spreads. It has no 2C business and only serves B-side enterprises and institutions. Its main customers are VCs and startups. I won’t say much about the reasons for its bankruptcy. As for whether it will cause further domino effects, we will have to wait until Americans get up on Monday and the U.S. stock market opens to know. However, the hero believes that the problem is not big and there will definitely be a proper solution. At present, the biggest impact in the currency circle is A16z, a VC that has invested in a large number of projects, and USDC. The market has fallen, and what should be done is to seek opportunities.
Many people are paying attention to the negative premium of USDC. The collapse of stablecoins is nothing new in the currency circle. Both centralized and decentralized stablecoins have collapsed, from the early USDT to the later luna, and this year's BUSD, all kinds of tricks and unexpected reasons. In general, not all funds of USDC are deposited in Silicon Valley Bank, which will not have a fatal impact on the project itself. There will be a wave of bank runs in the short term, and there will definitely be a panic in the market. As for the impact on USDT, it goes without saying that USDC and USDT are competitors. After this incident, the market value share of USDT in stablecoins will rise again. In addition, decentralized stablecoins may be brought to the table again.
Due to the impact of various negative news, the overall decline of Bitcoin exceeded expectations, and the short-term price of 20,000 US dollars was directly pierced, and the short-term panic was released. Now that BTC has fallen sharply on the daily level, it has hit the key support level. The following is a process of oscillation and accumulation of momentum to choose the direction. 18,000 to 187,000 is a strong support range. The CPI data will be released next Tuesday. This data is related to whether the 50 basis point interest rate hike this month can be implemented, and it will also affect the short-term trend of Bitcoin. Support level: 18,700 Pressure level: 21,000
ETH has also fallen to the key support level, which is the weekly MA30. In the later stage, we will pay attention to whether the short-term shock is strong. Now we should be cautious and pay attention to the strong support range below 1200~1260. Support level: 1260 Pressure level: 1500
