Key ideas:
- The crypto market capitalization increased by $77.35 billion to $1.134 billion as investors reacted to a widening crisis in the US banking sector.
- Coinbase looks beyond US borders amid increasingly anti-crypto sentiment.
- Congress announces March 29 hearing to delve into the collapse of Silicon Valley Bank and Signature Bank.
Crypto Market Decouples From NASDAQ as Banking Crisis Deepens
On Friday, the total crypto Market capitalization increased 7.32% (+7.32%) to end the day at $1.134 billion. bitcoin demand (BTC) and altcoins rose as investors responded to the latest news related to the US banking sector.
Investors responded to the news of Grupo Financiero SV (BLIMS) file for bankruptcy protection. While the filing may not have come as a surprise, Fed bailouts exceeded levels seen during the 2008 global financial crisis and the 11 banks that bailed out First Republic Bank likely alarmed major investors.
The NASDAQ Composite Index fell 0.74%, and the Dow and S&P 500 posted losses of 1.19% and 1.10%, respectively.
Ethereum betting inflows surge on ETH return to $1,800
On Friday, ETH betting tickets pink to the highest level since March 9. The US banking crisis pushed ETH to $1,800 for the first time since August 2022. With Shapella upgrade set for April 12, the rise in staking flows reflects sentiment towards the US banking crisis US, suggesting a bullish price response to the Shapella update.
According cryptoquantification, ETH staking inflows increased from 18,208 ETH on Thursday to 22,176 ETH on Friday. Above 20,000 levels should be a bullish sign considering historical betting entry levels.
After the update, participants can withdraw staked ETH from the Beacon Chain, which went live in December 2020. The upward trend eases fears of high withdrawal demand.
This week, coin base (CURRENCY) warned of long withdrawal times due to increased demand from stakeholders, saying,
โWe anticipate removal demand to be high soon after the update, and it may take weeks or months for the protocol to process removal requests.โ
Coinbase Announces Expansion Plans Beyond US Borders
On Friday, news hit the wires coin base (CURRENCY) addressed to foreign jurisdictions. Increased regulatory and legislator scrutiny has forced platforms to look beyond US borders to avoid missing out on the growing interest in the digital asset space.
According to a Bloomberg report, the cryptocurrency exchange is in talks to identify alternative locations in response to the deteriorating banking and regulatory climate for cryptocurrency companies.
Listed on the NASDAQ, Coinbase shares rose 10.62% on Friday to end the day at $74.98. Rising demand for crypto and plans to establish a global trading platform outside of the US generated the breakout session.
dubai Announced a new partnership with South Korean entities in block chain and industries related to the metaverse.
According to the announcement, the DMCC signed two Memorandums of Understanding (MoU) with South Korean entities to support Dubai's goal of expanding its position as a Web3 business hub. As part of the MoU, the DMC will help South Korean Web3 companies to establish themselves in the DMCC Crypto Center and its new Gaming Center.
The crypto winter has negatively affected growth in Web3 and Metaverse. However, the sandbox (SAND) has risen 77.8% so far this year, surpassing BTC (+65.1%) and the broader crypto market (+50.0%). This morning, SAND was up 4.83%, after a 13.53% gain on Friday.
Congress schedules hearing on SVB and Signature Bank closures
On Friday, House Financial Services Committee Chairman Patrick McHenry Announced the first hearing on the bankruptcies of Silicon Valley Bank and Signature Bank.
According to the announcement,
โPatrick McHenry and the ranking member of the House Financial Services Committee, Maxine Walters, announced a bipartisan hearing with federal financial regulators in response to the failures of Silicon Value Bank (SVB) and Signature Bank to be held on March 29, 2023.โ
Martin Gruenberg, Chairman of the Board of Directors of the Federal Deposit Insurance Corporation (FDIC), and Michael Barr, Vice President for Supervision of the Federal Reserve Board of Governors, are witnesses.
In a statement, McHenry said:
โWe are working around the clock to provide answers to the American people to protect depositors, promote the safety and soundness of American banks, and strengthen our financial system. We will conduct this hearing without fear or favor to get the answers the American people deserve."
The audience will undoubtedly generate a lot of interest. Players in the crypto market have faced increased scrutiny since the FTX collapse.
