Cryptos Stay Green Amid Banking Slump and USDC Depegging, According to Kaiko Analysts
According to analysts, while stocks are struggling to recover from the effects of the banking crisis, cryptocurrencies have managed to stay afloat.
The reason for this can be attributed, in part, to the actions of the Federal Reserve. The Fed’s recent intervention in the banking system has helped to inject liquidity into the market and reverse its policy of near-zero interest rates, which had been in place for the past decade.
As a result of this intervention, the Fed’s balance sheet has increased significantly, leading some to describe it as a form of quantitative easing.
Cryptocurrencies have also been affected by the recent depegging of Circle’s USDC from its dollar mooring, which has been linked to the banking crisis.
The collapse of Silicon Valley Bank, which held $3.3 billion in USDC reserves, has caused USDC to fall to an all-time low of around $0.87.
READ MORE: Bitcoin: Is the Market Overbought or Just Getting Started?
Binance’s native token, BUSD, has also been delisted from many trading platforms, which has led to some concern among analysts about the stability of the stablecoin market.
Of crypto trades involving fiat currently on the market, 47% are executed in dollars. Analysts are now asking whether the euro will emerge as the next dominant currency on exchanges or whether another fiat currency will take its place.
Alexander Stefanov
Reporter at CoinsPress
Alex is Editor-in-Chief of Coinspress and co-founder of Millennial Media Group, with nearly a decade of experience covering financial markets - crypto first, then everything else. It started in 2016 with Bitcoin. Like most people at the time, he didn't fully understand it - so he kept digging. Blockchain, tokenomics, the projects, the cycles. That curiosity never stopped, and eventually pulled him into traditional markets too: equities, commodities, macro. Not because he left crypto behind, but because you can't properly understand one without the other. What drives him is straightforward: he wants to know why something is happening, not just that it's happening. Most market coverage stops at the headline - price up, price down, here's a chart. Alex finds that kind of reporting actively unhelpful. If you walk away from an article without understanding the mechanism behind the move, what did you actually learn? He holds a degree in Tourism from New Bulgarian University - not the most obvious path into financial markets, but markets have a way of pulling in people who are simply too curious to stay out. He has authored over 200 in-depth analyses and more than 10,000 articles across crypto and traditional finance. He still thinks every day in markets teaches him something new. That's probably why he hasn't stopped.
