SVB collapse had zero to do with crypto. You must not have read any of the news - it was a classic bank run.
Had Silvergate not collapsed, SVB's balance sheet weakness may not have prompted a run.
Yield chasing blows up overleveraged entity, nothing new here really, except usually people rightfully criticize the yield chasers/overleveragers for being greedy; this time people are acting like SVB was a victim of the Fed instead of their own extreme incompetence.
Or would. They lost only <2B so far, maybe they could earn it back, same way as banks make money. It's not like they were married to their bonds assets, they could do a lot of things with those.
Contagion spreading to non-mega banks because the federal government told them to buy “risk free” treasuries and mortgage backed securities. Rates go up and suddenly if they need cash the bonds must be sold at a loss.
To blame a problem caused by central banking on crypto is absurdity to the highest level.
> 10 AM: some suggest getting the money out of SVB for safety. Only upside. No downside.
https://twitter.com/torrenegra/status/1634573234187407369
Anecdote to be sure but it's fascinating to read the account of people organising a bank run.
SVB had just recently reported that they had no liquidity issues and did not foresee any need to sell any of their assets at a loss.
Then Thursday morning the announced that they had, in fact, liquidated some of their assets at a loss.
Your bank is supposed to be zero risk and essentially as good as cash. Any sign that your bank might have liquidity problems significantly raises that risk from 0. In that case it is beyond prudent to try to move out of that bank fast.
I love a good conspiracy theory as much as the next, and wouldn't be surprised if there were ill intentions behind some of those meetings. However this bank run was rational and does not need to be explained away by any conspiracy to organize a bank run.