• The Silicon Valley Bank run caused fear, uncertainty, and doubt (FUD) about Bitcoin earlier this week.
• Despite the FUD, accumulation of whales and sharks continued as well as increased BTC volume to a three-month high.
• USDC holders reacted to the SVB failure by exchanging their holdings for other stablecoins and Bitcoin.
The Silicon Valley Bank Run
Fear, uncertainty, and doubt (FUD) about Bitcoin stemming from the collapse of a single bank contributed to its downward trend earlier this week. Yet, the failure of yet another bank may have reversed the public’s opinion and brought back support for the king coin. However, Bitcoin may have been affected differently by the Silicon Valley bank run that triggered a drop in USDC.
Reactions to SVB Failure
The California Financial Institutions Control Board closed Silicon Valley Bank, a significant bank for startups with venture capital backing. People’s reactions to the SVB failure suggest uncertainty is the current prevalent mood. The process of withdrawing assets for customers with $250,000 or more has sparked discussions based on a thread by Mark Cuban (an American businessman) and subsequent comments. In addition, Circle announced in a statement that over $3 billion of its $40 billion was held by SVB. Another negative reaction has been the flight of USDC holders exchanging their holdings for other stablecoins and Bitcoin.
Whale & Shark Accumulation
According to Santiment statistics, the accumulation of whales and sharks continued despite the FUD that was caused by the Silvergate crash. As of this writing, addresses with 10-10,000 BTC had risen to over 67%. Looking at data it is clear there was an upswing in whale and shark accumulation coinciding with time USDC was experiencing capital flight.
BTC Volume Reaches Three-Month High
In addition to whale & shark data metrics on Santiment revealed some intriguing actions: By 9am UTC on March 11th BTC volume had already reached 45 billion; By 17:00 UTC it had reached 35 billion; As of writing 39 billion—the highest since December—indicating rise in business activity overall .
USDC Outflows
USDC has seen increased swaps as more Bitcoin leaves exchanges indicating people are exchanging their holdings for other stablecoins & Bitcoin due to fears surrounding Silicon Valley Bank failure