Getting ready for the mega bull run
With the current happenings in the financial market and cryptocurrency industry, one can see that spending profit in relationships shouldn't be underrated I mean diversification of funds is very important in this space. Imagine waking to seeing your funds all gone without investments trace As Stable coins/assets becoming unstable, big banks getting bankrupt and the likes.
Silicon valley Banks steam started declining as the federal reserve aggressively increased the interest rate over the past year, when the interest rate where close too zero most of these banks loaded up long term Treasuries bills by the government thinking it was a seemly low risk investment, as the fed increased interest rate the value of those assets has fallen drastically leaving banks seating at unrealized losses.
The higher interest rate has been hit the Tech stocks since making it difficult for them too raise funds which has made many tech firms too draw down their deposited they have been holding at SVB to run their operations, hence the bank run and the crash of the 18th biggest bank in America. They higher interest rates also lowered other assest the bank needed too liquidate to raise funds too settle its customers.
After declaring bankruptcy the government had taken over the bank to ensure that depositors reclaims back thier mandated funds.
Right now alot of persons are scared leaving their money in the bank hence the bounce in the price of cryptocurrency.
Posted Using LeoFinance Beta
