Federal Reserve Officials Are Sitting Back And Waiting For Something To Happen!
The overnight market continued to recover slightly, and Bitcoin gradually stabilizes around 20.5k.
Silicon Valley Bank (SVB), Forbes 2023 America's Best Bank, has also been named this title for 5 consecutive years.
This can't help but remind people of another Forbes list: 30 under 30 (30 entrepreneurs under the age of 30).
Listings cost money. People who are willing to spend money to be on the list probably regard the money as an investment deep down in their hearts.
It is an investment, and it must be recouped hundreds or thousands of times.
In the middle of 2021, when SVB bought bonds, the officials of the Federal Reserve stated through the dot plot of their interest rate hike plan that the interest rate will not be higher than 1% by 2023, and everyone said that it will never be higher than 1.75% .
Through 2023, the federal rate is 4.75%.
American netizens commented that this is a perfect example of a completely incompetent and irresponsible institution that for some ridiculous reason has monopolized money issuance in the United States.
Powell is hawking every day, and he is tough outside and weak inside.
Fed officials are sitting back and waiting for something to happen.
SVB's directional exploding does not specifically target the crypto industry.
However, the crypto industry is also a part of the technology industry.
Because SVB's service is particularly good, a large amount of funds profited from the technology industry, as well as the joy of the autumn harvest, are gathered here.
The Federal Reserve raises interest rates and lifts a rock to smash other people's feet, but it shows its own ass.
Exploding is a disaster, but also a victory.
Suckers - institutions - banks, forming a closed loop.
The praying mantis catches the cicada, and the oriole follows behind.
How could a16z have imagined that it has funded so many projects that issue coins, and with billions of dollars in their hands, put it in SVB, but it has become a meal for traditional finance.
In the end, New money was defeated by Old money.
USDC itself stated that it has an exposure of $3.3 billion in SVB.
This accounts for about 10% of the total.
But USDC has suspended conversions to U.S. dollars.
If tomorrow, March 13, the exchange is open, what will happen?
The mood of the masses is stable, and USDC is re-anchored, everyone is happy?
Or is the crowd withdrawing money one after another, and USDC is being run on?
10% is not a big deal. However, if the run is withdrawn by 80%, the exposure ratio will soar to 50%.
It's a death spiral.
Unless, the white knight rides the colorful auspicious cloud (dollar) and comes to USDC.
In order to fight against USDT of HK origin, Silicon Valley elites created USDC.
Compliance supervision, transparency and security once confused many, many people.
The dollar of the Federal Reserve is M0, the dollar of commercial banks is M1/M2, and USDC is M3 at best.
When the M1/M2 explodes, the M3 has nowhere to hide.
Ordinary people cannot directly hold M0 dollars (in digital form).
The M0 asset that ordinary people can directly hold is called Bitcoin.
Regulation cannot solve systemic problems.
The SEC can only work on a single point.
Its solution can only be "rice is poisonous, don't eat it".
People blame it stops eating because of being choked.
The dollar of SVB is the salary that all Silicon Valley start-ups want to pay their employees.
Circle’s USDC is the stablecoin of choice for many DeFi protocols.
Exploding SVB is tantamount to drawing salary from the bottom of the pot.
You said that Uniswap is a DEX protocol developer, why do you play the ideological game? What kind of donations are made on the page?
Political correctness is really a deadlock in Silicon Valley's tech world.
The collapse of SVB was the worst banking crisis since 2008.
In 2008, the financial crisis. Lehman Brothers collapsed. The Fed started quantitative easing.
Satoshi Nakamoto invented Bitcoin.
In the genesis block of Bitcoin, Satoshi Nakamoto engraved the front-page headline of The Times on 1/3/2009:
Chancellor on brink of second bailout for banks.
The chancellor is on the verge of another bailout of the banks.
Could SVB be the Fed's second Bear Stearns moment?
In March 2008, the Federal Reserve personally stepped down and took over Bear Stearns Bank through JPMorgan Chase, avoiding the latter's bankruptcy.
Immediately afterwards, the monetary policy shifted and quantitative easing started.
But this rescue, while alleviating the temporary crisis, created a greater injustice.
When it is thriving, financial institutions enjoy the offerings of suckers and spend their days drinking.
Money that was squandered, wasted and embezzled, filled and covered up by the flood of credit.
When the credit crunch cycle hits, bare-ass financial institutions are rescued by angels, and no one is going to be held accountable for the money they wasted — hard-earned money by the suckers.
March 12, 2020, crypto's "312" anniversary, a day remembered by the old suckers.
The Covid-19 pandemic spread in North America, and the U.S. stock market died suddenly, and big melt-downs followed. Bitcoin plunged vertically from around $10,000 to around $3,500.
The Fed did not hesitate to take action and urgently launched unlimited quantitative easing.
The bull market cycle in 2021 is slowly kicking off when everyone is in shock.
March 12, 2023, sunny, Sunday.
Another year of "312".
Extra: The full book of "History of Bitcoin" has been released on leanpub https://leanpub.com/history-of-bitcoin
nostr: npub1dlwqsauewd56dekrnuxh8xukvg7pgeelwp39qah8ts5x28tmf7pqp5tcp3 twitter: @liujiaolian https://twitter.com/liujiaolian
(Disclaimer: The content of this article does not constitute any investment advice. Cryptocurrency is a very high-risk product, and there is a risk of going zero at any time. Please participate carefully and be responsible for yourself.)