The recent collapse of Silicon Valley Bank (SVB), a crypto-friendly institution, has triggered a massive sell-off in the cryptocurrency market, causing the value of Dogecoin to drop by 21% in the last seven days alone.
The trading volume of DOGE has surged, indicating an impending intense market sell-off, with the meme token losing 11% of its value in the last 24 hours alone. The macroeconomic uncertainty surrounding DOGE is due to its highly speculative nature and lack of fundamental value, making it unpredictable and subject to sudden shifts in sentiment and market dynamics.
Bitcoin (BTC), the biggest crypto in terms of market cap, saw its price fall from the $21,000 level, trading at $20,372 at the time of writing as BTC investors brace for the next episode in the ongoing crisis that befell Silicon Valley Bank. However, at the time of this writing, BTC had recorded a price increase of 2.18% and was currently trading at $20,317.06 with a 24-hour trading volume of $40,656,177,360, an increase of 6.84%.
SVB’s failure can be attributed to the Federal Reserve’s forceful hike in interest rates over the previous year, which resulted in the bank’s loan portfolio becoming increasingly unprofitable. However, this forced SVB to pay out more than expected in interest payments and led to it posting losses for the first time since its founding.
Additionally, Binance and Coinbase recently announced that they are halting USD Coin (USDC) stablecoin conversion amidst the collapse of the Silicon Valley Bank, which has sent shockwaves in the cryptocurrency space. This move is a major blow to investors who rely on stablecoins as safe-haven assets in times of market volatility and uncertainty. It is unclear how this development will impact the cryptocurrency space, but it could lead to further regulation of the sector.
Nonetheless, the crypto market has demonstrated a bullish feeling in the previous 24 hours, with the overall crypto market volume for the last 24 hours being $100.34B, representing a 40.29% rise. DeFi‘s total 24-hour volume is presently at $9.36 billion, accounting for 9.33% of the overall crypto market’s 24-hour volume. The total volume of all stable currencies is currently $110.14B, accounting for 109.77% of the overall 24-hour crypto market volume.