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In less than 8 days in the United States of America, the first economic power, has seen 3 of its banks fail, silvergate, silicon valley bank and signature bank.

We know that silvergate is the smallest of these 3 and the one that was dedicated to finance cryptocurrency projects, had a loss of one billion dollars and its investors withdrew 8 billion which caused the bankruptcy, we can conclude that it was a consequence of the fall of FTX and genesis, the business partners of silvergate.

On March 10, U.S. regulators closed silicon valley bank and on March 13, nervous investors withdrew their money from silicon valley bank, withdrawing some $10 billion.

Silicon Valley Bank SVB customers withdrew $41 billion in one day, many startups had their money in SVB so the bank failed to get liquidity, many say it needed $2 billion.

The truth is that the regulator realized that $1 billion was missing and ceased operations, a bank that started in 1983 and became the second largest bank failure in U.S. history.

So silicon valley bank, dragged signatura bank because its investors began to be afraid and started massive withdrawals, here the important thing is to understand that nobody wants to invest in technology and no bank could get fresh money.
The 3 banks have in common the fact of financing technology companies and start ups, which are mainly applications and social networks, many get funding from these banks especially from SVB and then used to keep their capital in these same banks.

But the financial crisis has made the business of investing in technology not profitable as before, the market has not only slowed down but has been falling, so investors did not put new money in these banks and they failed to provide liquidity, when your bank headquarters is in the United States you suffer heavy regulations, banks have failed but the FED will guarantee all deposits of savers, so in my opinion it is a happy ending for savers.

Thank you for reading

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