According to new data from Goldman Sachs, #bitcoin has outperformed traditional investment assets and industries, such as technology and gold, in year-to-date (YTD) absolute returns and risk-adjusted performance.

The top #cryptocurrency has outperformed the S&P 500 (+4%), Russell 1000 Growth (+10%), consumer discretionary (+11%), information technology (+16%), communication services (+15%), gold (+4%), and consumer discretionary (+11%) in terms of YTD absolute returns.

Crude oil and energy prices have fallen by 11% and 14%, respectively. Due to weaker fundamentals and broader market worries, oil prices have fallen to their lowest point since December 2021. OPEC+ and the #US will determine the market's floor.

The bellwether coin also showed good performance in terms of risk-adjusted returns, as indicated by its Sharpe Ratio score of 1.9. Compared to information technology (1.5), Nasdaq (1.4), and healthcare, this is higher (-1.1).

The rising chance that the US Federal Reserve would eventually abandon its aggressive monetary policy has been blamed for the recent increase in the price of bitcoin.

Since March 10, when regulators closed down #SiliconValley Bank, the value of cryptocurrencies has surged by 35%.

Despite the market analysts' predictions of a potential correction, Bitcoin's recovery has been more pronounced than that of Wall Street stocks, attracting the interest of investors.

In 2022, investor trust in cryptocurrencies was weakened by the collapse of Terra, FTX, and Celsis 3AC as well as global monetary tightening, with Bitcoin seeing a sharp decline.

Nonetheless, despite the continuous banking crisis, #BTC closed the week with a 34 increase, the best since January 2021, showing a narrative shift in the reputation of the biggest cryptocurrency.

After a terrible bear market, the cryptocurrency rally during the current banking crisis has been welcomed by desperate cryptocurrency investors, and some of them have argued that there is a change in how Bitcoin is viewed. Yet, fluctuations in inflation rates and the Federal Reserve's interest rate choices continue to have a significant impact on the price of Bitcoin.

One of the biggest bank failures in U.S. history occurred on Friday as federal regulators shut down Silicon Valley Bank (SBV), a major lender to the technology industry. 

The news sent shockwaves throughout the industry, with SBV's attempts to raise $1.75 billion earlier in the week proving unsuccessful after it suffered nearly $2 billion in losses on its bond portfolio primarily consisting of U.S. Treasuries. On Friday, the FDIC took over as receiver for SVB, and its shares were halted as prices continued to plummet, causing a decline in the broader market, particularly in the bank and financial shares.

Silicon Valley Bank (SVB) experienced a collapse after its customers withdrew deposits exceeding the $250,000 limit guaranteed by the Federal Deposit Insurance Corp (FDIC), leading to a downward spiral of SVB's shares. The event caused concerns that other lenders might have incurred similar losses, leading to a decline in shares of banks and financial companies as SVB tried to prevent collapse.

According to the reports, SVB suffered losses of almost $2 billion from the sale of U.S. bonds purchased before the Federal Reserve started raising interest rates a year ago. Higher yields caused bond prices to decrease, which isn't certain whether other large banks may also experience similar losses.

In an attempt to recover from the loss of about $1.8 billion from the sale of a $21 billion portfolio of U.S. Treasuries, SVB announced a stock sale on Wednesday. The bank executives stated in an investor letter that they had sold almost all the bank's liquid assets.

The Federal Reserve's year-long efforts to raise interest rates have allowed many banks to increase their loan charges, thereby enhancing their profits. However, Silicon Valley Bank's collapse highlights the potential negative impact of higher rates, such as significant losses from the sale of Treasuries, as their prices have plummeted.

#SVB #SiliconValley #crypto2023 #coingabbar

The British affiliate of #SiliconValley Bank distributed between 15 and 20 million pounds in incentives to management and personnel.

The British affiliate of Silicon Valley Bank gave out between 15 and 20 million pounds in incentives to management and workers (approximately 18.26 million to 24.35 million pounds). One million dollars (USD). It is thought the incentives were supplied to fulfill "previously negotiated payments" to "retain core staff". Prior to this, Sources who claimed that HSBC UK #Bank had paid £1 for the UK division of Silicon Valley Bank.

Despite the alleged claims that the incentives would not have been paid this week if SVB UK had not been acquired in a solvent manner, the payments were made. The shares held by the senior executives and other employees of the company were said to have lost all value as SVB UK was so close to filing for bankruptcy.

Another insider with knowledge of the matter asserted that the incentive payments were evidence of HSBC's confidence in SVB UK's talent pool and that they were intended to fulfill previously agreed-upon payments in an effort to retain key personnel. #SVB UK said earlier on March 17 that it was pleased to be joining #HSBC after 14 years of promoting and advancing the creative economy in the UK. A tweet was used to make this announcement.

The bank hopes that the bonuses will aid in attempts to retain employees and hire new ones. In a highly competitive job market, attracting and retaining top talent depends on providing alluring incentives and benefits. It is anticipated that this move by Silicon Valley Bank's UK branch will increase its appeal as an employer to financial professionals, enabling it to maintain its market leadership.

The cryptocurrency market has been trading sideways in recent weeks, with the leading token, Bitcoin, following a similar pattern. Despite numerous attempts in April, #bitcoin has struggled to break the $31,000 mark. The price is blocked by its daily Kijun at around $29,100 and by its psychological resistance at $30,000.

A correction to around $25,000 could be preferred to prepare for an extended bull run as long as this zone blocks prices. This would correspond to a retest of the same resistance level at the beginning of the year and can be confirmed as the support level. 

In the event of a break through the $31,000 mark, then Bitcoin could continue to climb towards $33,500. This would provide the next resistance level ahead of a potential ascent to $40,000. However, if the bears persist below $25.000, Bitcoin risks breaking the price spread, which could cause the price to fall below the $18,000 mark.

Bullish Sentiment Based On External Factors

Bitcoin is in good stead and could make a major bull run due to the following factors. First, the banking crisis is plaguing the United States and other parts of the world. Secondly, there is the decoupling between BTC and traditional markets. Finally, we can mention the brake on interest rates the US Federal Reserve promised. 

The #SiliconValley Bank bankruptcy in early March is still wreaking havoc on the industry, with many Americans scared of placing their money in the Bank. Bitcoin’s recent price surge has coincided with this, showing its flexibility as digital gold. 

There has been a surge among investors to diversify their assets into Bitcoin for good reasons. Bitcoin does not need intermediaries; anyone can store #BTC in their wallets without trusting a centralized institution. Bitcoin is a unique asset due to its volatility. At times it shows a high correlation with stock indices. While sometimes, it diverges and forms its own course. The following graph shows the comparison with respect to gold, the S&P500, and the NASDAQ.

Pearson’s correlation shows how close BTC’s behavior is to that of certain traditional assets. If the shares of banking and fintech companies continue to fall, there’s likely to be a huge inflow of volume into the Bitcoin network leading to a price surge. 

Michael Burry, who gained notoriety for shorting the mortgage bond market in 2007, is indicating that the market may be nearing a bottom at the moment. This follows his prior claim that the current situation is comparable to the banking crises of 2003 and 2008. Burry made a comparison between the current situation and the 'stupid' risks that led to the demise of the #SVB and #SignatureBank .

The trader cited the instance of #JPMorgan making a financial commitment during the Knickerbocker Crisis in 1907 as an illustration. The US regulators stepped in to preserve consumer savings in the wake of #SiliconValley Bank's failure. Therefore he made a subliminal allusion to the possibility that the markets would bottom as a result of this intervention, similar to the JP Morgan move. Given the current behavior, does this imply that the price of Bitcoin will continue to rise?

“In October 1907, Knickerbocker Trust failed due to risky bets, sparking a panic. Two others soon failed, and it spread. When a run began on a healthy Trust, J.P. Morgan made a stand. 3 weeks later the Panic resolved & markets bottomed. A stand was made this past weekend.”

Yet this runs directly counter to his most recent assertion that the financial issue may be resolved rapidly. He said that there was no real threat present.

In an effort to locate purchasers for Silicon Valley Bank, the Federal Deposit Insurance Corp. (FDIC) is now seeking to conduct an auction procedure. Once Bitcoin crossed the $26,000 barrier on Tuesday, the #cryptocurrency market began to exhibit an adverse association with the American financial industry. Hence, if a market crash occurs, will Bitcoin surpass $30,000 in the upcoming weeks?

Circle, a #stablecoin issuer, revealed that it has mostly fulfilled all of the outstanding redemption requests for its stablecoin Dollar Coin (USDC).

Circle said that it has redeemed $3.8 billion USDC and issued $800 million USDC between the morning of March 13 and the close of business on March 15 in an operational update.

Update: As of close of U.S. banking operations Wednesday, March 15, we have cleared substantially all of the backlog of minting and redemption requests for USDC. Get the details: https://t.co/5WEAgPps0E

— Circle (@circle) March 16, 2023

After reporting last week that it held stablecoin reserves worth $3.3 billion in the now-defunct #SiliconValley Bank, which caused USDC to lose its dollar peg, Circle experienced a bank run.

In a blog post, Circle stated that the recent events had an effect on USDC's liquidity operations. It also stated that it has been working to restart services with alternative banking partners, notably payment and #USDC redemption services.

A new banking partner was employed by #Circle on March 14 for wire transfers inside the United States, and on March 15 for transfers outside to and from 19 other countries.

It stated that by March 16, further capabilities were anticipated to be online.