• The Silicon Valley Bank run caused fear, uncertainty, and doubt about Bitcoin earlier this week.
• However, the failure of yet another bank may have reversed public opinion and brought back support for the king coin.
• BTC volume has risen to almost a three-month high as transactions go up, while whale and shark accumulation continues despite FUD.
Silicon Valley Bank Run
The California Financial Institutions Control Board closed Silicon Valley Bank, which caused Fear, Uncertainty, and Doubt (FUD) about Bitcoin earlier this week. The FDIC was designated as the receiver to safeguard insured savings, although the reason for the shutdown is unknown. People’s reactions to the SVB failure suggest uncertainty is currently prevalent in the market. Circle announced that over $3 billion of its $40 billion was held by SVB which caused a capital flight of USDC holders exchanging their holdings for other stablecoins and Bitcoin.
Whales & Sharks Step Up Accumulation
Despite FUD that was caused by the Silvergate crash statistics from Santiment reveal that whale and shark accumulation is continuing with addresses with 10-10,000 BTC rising over 67%. On 11 March there was an upswing in whale and shark accumulation coinciding with USDC experiencing a capital flight.
BTC Volume Reaches Almost Three Month High
The volume metric on Santiment revealed an increase in business activity as BTC volume reached 45 billion at 9 a.m UTC on March 11th before reaching 35 billion by 5 p.m UTC on March 11th. This is notable because it is the highest Bitcoin has seen since December with 39 billion being recorded as of this writing.
Bitcoin Outflow Becomes Dominant
As more Bitcoin leaves exchanges USD Coin (USDC) has seen increased swaps suggesting an outflow from USDC to other stablecoins or even Bitcoin itself as investors become wary of holding USDC due to concerns about Silicon Valley Bank going bankrupt in 2023.
After experiencing FUD due to Silicon Valley Bank running earlier this week it seems like public opinion might be reversing in favour of Bitcoin after yet another failed bank causing whales and sharks to step up their accumulation while BTC volumes reach almost 3 month highs signaling an increase in business activity amidst fears that USDC could be impacted due to concerns around its stability following Silicon Valley Banks failure resulting in an outflow from USDC into other stablecoins or even Bitcoin itself