Bitcoin

With the closure of Signature Bank, U.S. crypto companies have limited banking options, a blow to the industry. So why is Bitcoin rallying?

It may be too good to be true. It May Be Too Good to Be True.

Bitcoin, the digital currency that has long been viewed with skepticism by the financial establishment, is having its moment in the sun.

But at least for now, bitcoiners can shake their heads as the banking system once again depends on the government to throw it a lifeline. Oh, the irony of it all. Before joining Forbes I worked as a reporter and editor at Bloomberg where I covered everything... People are realizing the importance of sound money with no counterparty risk.” Bitcoin's rise is particularly sweet for its adherents, who’ve long argued that it represents a sound alternative to the traditional banking system. The currency is still down about 65% from its all-time high, and its price remains notoriously haywire.

Somewhere out there, there are ride-or-die diamond-hand crypto HODLers who believe that they've been vindicated by the losses in the banking industry.

[NYSE:SI](https://www.tipranks.com/stocks/si/forecast)) failing and Signature Bank ( [NASDAQ:SBNY](https://www.tipranks.com/stocks/sbny/forecast)) sputtering, a lot of crypto’s allies are out of the fold, at least temporarily. [last three months of bitcoin trading](https://www.tipranks.com/cryptocurrency/btc-usd), bitcoin saw a rally throughout much of January and February. Many were halted for trading throughout the morning, and that left bitcoin looking a lot less risky in the interim.

According to Arthur Hayes, Bitcoin and the broader crypto market are poised for a new bull run in the face of the brewing banking crisis.

Will the Fed completely suspend its rate hikes? And the first cracks in the Fed’s quantitative tightening (QT) cycle are imminent. Even though the Fed is only replacing existing money, the signal effect is clear. And that moment may have arrived, as analyst Dylan LeClair, among others, explains in his latest tweet, referring to the Fed Funds Futures. Federal Reserve (Fed) chairman Jerome Powell has consistently emphasized in recent months that he will keep raising interest rates until inflation is back at 2% or until something breaks. Has the Fed really cranked up the money printing machine again to bail out Silicon Valley Bank (SVB), kicking off Quantitative Easing (QE)?

Crypto surges after Silicon Valley Bank collapse despite risks. While Bitcoin is up, one stablecoin falls.

Even as the USDC stablecoin repegs at $1, the current 0% premium indicates a lack of leverage buying demand for Bitcoin via futures instruments.

dollar deposits, with [the closure of Signature Bank affecting OKCoin](https://cointelegraph.com/news/okcoin-suspends-usd-deposits-in-wake-of-signature-bank-closure). [Silvergate Bank stock price collapse on March 1](https://cointelegraph.com/news/silvergate-stock-plunges-31-after-delayed-filing-raises-doubts-over-future) after the delayed filings of its annual 10-K financial report. dollar](https://cointelegraph.com/news/usdc-bounces-back-towards-1-peg-after-fed-announcement) on March 10. Fiat gateway on and off ramps are critical for stablecoins, market markers, and cryptocurrency exchanges for a variety of reasons. Signature Bank was one of the most prominent financial institutions serving the cryptocurrency industry, alongside Silvergate Bank, which announced its [voluntary liquidation](https://cointelegraph.com/news/silvergate-capital-corporation-will-voluntarily-liquidate-silvergate-bank) last week. Consequently, the Bitcoin 3-month futures premium turned into a discount, otherwise known as backwardation. Such an unusual movement caused price distortion across exchanges, prompting Binance and Coinbase to disable the automatic conversion of the USDC stablecoin. The chart shows traders had been neutral-to-bearish until March 10 as the basis indicator oscillated between 2.5% and 5%. Bitcoin quarterly futures are popular among whales and arbitrage desks. According to the regulators' joint statement, "no losses will be borne by the taxpayer," although the strategy for deploying Treasury assets is questionable. The intraday high of $24,610 may not have lasted long, but $24,000 represents a 45% increase year-to-date. [USDC](https://cointelegraph.com/usdc-price-index)) also caused significant turmoil in the cryptocurrency industry after [breaking below its 1:1 peg with the U.S.

Investment banking giant Goldman Sachs analysts have predicted that the U.S. central bank will not raise interest rates at its next FOMC meeting on March 22 ...

Bitcoin surged 13%, the biggest one-day increase since the wild price swings seen during November's market turmoil, and shares of crypto companies rallied ...

Bitcoin surges as Fed liquidity plans prompt BTC price to erase Silicon Valley Bank losses.

At Coinbase all client funds continue to be safe and accessible including USDC conversions which will resume on Monday,” it tweeted. dollar peg at the time of writing. [summarized](https://twitter.com/tedtalksmacro/status/1635105582935072768). For trader and analyst Rekt Capital, this “likely” put pay to the bearish double top pattern previously playing out on weekly timeframes. [read](https://twitter.com/rektcapital/status/1635020401024860161). If CPI comes in below estimates I don’t see a reason for the market to hold back.” “For any local longs, stops below 21K should be safe IMO. [summarized](https://twitter.com/BTC_Archive/status/1634994341071712257). The volatility — and temporary relief for bulls — is due to events in the U.S. [added](https://twitter.com/tedtalksmacro/status/1635059947242418183). All depositors of this institution will be made whole. A snowball effect soon began as depositors became wary that something might be wrong regarding liquidity.