Crypto-Friendly Banks’ Financial Contagion Invokes the Phantoms of the 2008 Crisis - A Bad Season For Avalanche and Ripple (XRP); Big Eyes Coin Emerges Strong
Many cryptocurrency firms, including Avalanche (AVAX) and Ripple (XRP), have announced their exposure to the reputable crypto-friendly Silicon Valley Bank (SVB) following its collapse. Thus, investors are getting concerned about possible financial contagion. The potential global downturn also brought up memories of the 2008 crisis, when equities crashed and large corporations failed, leading to massive layoffs and unemployment worldwide.
Conversely, there is still optimism for other cryptocurrencies, such as Bitcoin (+8.14%), Ethereum (3.89%), and Big Eyes Coin (raised $31.5 million months before its launch), which have all seen an upsurge in the past 24 hours despite the downward trend in stocks.
Plummeting Stocks: It Started From Crypto-Friendly Banks
Silvergate, Signature, and Silicon Valley Bank have ignited fear over financial contagion. First Republic Bank is now following suit —60% of their stocks are falling— and the general investor market is concerned that this could make the already fragile global economy post-COVID even more susceptible.
As seen by the declining stocks on the global market, investors' fears are well-founded.
American-based news media outlet CNBC reports that mainland China lost 0.72% of its value while South Korea lost 2.56%, Japan lost roughly 2.67%, and Hong Kong lost 2.5%.
Australia's decline to 1.41% was similarly primarily caused by the banking industry. Meanwhile, Europe has closed to 5.7% lower, according to the London-based news agency Reuters.
Phantoms of the 2008 Crisis
The closure of the Silicon Valley Bank made it the second-largest bank failure in American history, behind Washington Mutual's demise during the 2008 financial crisis. With this, the market couldn't help but note the similarities between the current economic slump and that of 2008. A number of international authorities argued, though, that there was no systemic risk to the financial system, as a whole, that might lead to a recurrence of the devastating 2008 catastrophe.
Ripple (XRP) and Avalanche’s (AVAX) Connection With SVB
Two cryptocurrency firms, Avalanche Foundation (AVAX) and Ripple Labs (XRP), declared having "some exposure" to Silicon Valley Bank. This could be a terrible indication for Ripple, which is currently involved in a legal dispute with the SEC about the status of its cryptocurrency, XRP.
Yet, both cryptocurrencies guaranteed solid financial positions, as evidenced by their price market capitalizations.
XRP currently has an $18.9 billion market capitalization, with a 0.63% increase in the last 24 hours. Meanwhile, AVAX is seeing a 2.50% rise, with a current market cap of $5.3 billion.
Big Eyes Coin—Investment You Can Trust!
The cryptocurrency market has emerged to be indeed a hedge against inflation, evident through its spike of funds despite traditional financial institutions’ collapse worldwide. Among the cryptos, you can trust Big Eyes Coin (BIG).
BIG is an up-and-coming meme token on its 12th presale stage, with $31.54 million in funds raised. Big Eye's biggest offer to date is their vault pin 300! Should a BIG user purchase a token using the newest and time-limited vault pin, “300,” they get to bag home 300% extra free loot boxes for a minimum of $100!
Be part of Big Eyes Coin’s growing family today. Follow them via their website or social media to stay updated:
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Website: https://bigeyes.space/
Telegram: https://t.me/BIGEYESOFFICIAL