đż What?? Bitcoin Hit $50k for a Few Minutes!
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This might sound like an exaggeration, reader, but we assure you itâs not â weâre living in unprecedented, historic times not only for crypto but for the entire global financial system. Welcome to Tokengraph â weâve got you covered with the news breakdown.
On the docket for todayâŚ
BTCâs Price Shot up to $50k
Signature Bank Falls after SVB
Debts Repaid with Depegged USDC
Bitcoinâs Market Cap Flips Meta
Instagram Dropping NFT Support?
Bitcoin just experienced a flash spike to $50k, a price it hasnât seen since late 2021 â and itâs likely because of the USDC depegging.
Someone fat fingered a buy order on #bitcoin USDC pair to $50,000 on Binance!
— Lark Davis (@TheCryptoLark)
Mar 13, 2023
Binance just listed the BTC/USDC trading pair on its exchange. Mere hours after the listing, the price melted up to $50k per bitcoin â and the most probable explanation is that a single market order ate through the entire order book.
This implies that the order book was very âthin,â meaning that there just werenât very many sell orders active at all (likely because of hesitation regarding USDCâs depeg last week). Thus, just one large market buy could have eaten through the whole book in one bite.
The potential reason for the flash spike is likely due to thin order books for the newly launched BTC/USDC pair on Binance. The exchange listed the pair only a few hours before the impulse price surge.
— Cointelegraph (@Cointelegraph)
Mar 13, 2023
BTCâs price returned to normal just minutes after the error, and this doesnât seem to be a long-term issue, but it still shocked the community â especially in the wake of USDCâs depegging and Silicon Valley Bank and Signature Banksâ shutdowns.
BOOM! #Bitcoin hit the $50,000 level in USDC pair! đđ
— Keyur Rohit (@CryptoKingKeyur)
Mar 13, 2023
Just look at that candle. Insane!
ANALYSIS: Bitcoin price briefly spiked to $50K on #Binance after a large order trade error, following the USD Coin peg snap and market frenzy caused by Silicon Valley Bank collapse.
— Coingraph | News (@CoingraphNews)
Mar 13, 2023
We havenât really seen a major price error like this since Ethereum flash crashed from around $300 to $0.1 on GDAX, the exchange that would become Coinbase Pro, in 2017. That was only 6 years ago, but the crypto market moves at the speed of lightning, and weâre looking at entirely different magnitudes of valuation currently. Hopefully, this was an isolated incident.
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Signature marks the third crypto bank to go down in the past month, but it wasnât due to insolvency. It seems that regulators just wanted to take the bank down, possibly to send an alarming anti-crypto message.
Silvergate is still solvent, despite an unprecedented 90 day $12 billion liquidation sparked by a corrupt sitting Senator who coordinated a bank run w/ short sellers.
Signature was healthy. NYDFS went rogue in shutting them down, and surprised even the FDIC.
It's targeted.
— Ryan Selkis 𼡠(@twobitidiot)
Mar 13, 2023
Former US House of Representatives member and current board member of Signature Barney Frank has made it clear that he believes this is a deliberate anti-crypto move. If thatâs true, its aim could be to harm cryptoâs reputation and stunt its growth as an industry moving forward.
BREAKINGâźď¸đşđ¸ Signature Bank board member and former congressman Barney Frank says âregulators wanted to send a very strong anti-crypto messageâ in shutting down the bank.
âThere was no insolvency based on the fundamentals.â đł
— Radarđ¨ (@RadarHits)
Mar 13, 2023
Signature did indeed experience a massive amount of customer withdrawals over the past few days, likely in response to the Silicon Valley Bank liquidation â but crucially, Signature was able to handle all of the withdrawals. Everything went smoothly, yet still they were shut down. It simply doesnât add up.
Heard this independently from other sources as well. I suspected as much last night but confirmed today. Signature was executed last night not due to any runs but as a political scalp, intended to be veiled by the fog of war.
— nic carter đ (@nic__carter)
Mar 13, 2023
The US government is now confusingly framing the shut down of Signature as a win for the people and as a positive, protective move from the government to keep Americans safe.
As Signature was the last of the major banks that supported the crypto industry, organizations and individuals are now seeking other options and speculating on who could step up to fill the banking void. All eyes are currently on Kraken, which plans to open a crypto bank later this year, and Coinbase, whose CEO has entertained the same possibility for his company.
Bitcoin made close to 7,000,000,000% gains from its original price of $0.0099 to its all-time high of ~$68,000. Which of the following traditional stocks has the highest percentage gain over the past 20 years?
A. Tractor Supply Co.B. AltriaC. Monster EnergyB. Volkswagen
Scroll down to the bottom to see if you're right!
Other Top Stories Today đ˘
Seeing their opportunity last week, debtors saved a total of $100M or more on their loans when stablecoins USDC and DAI depegged through arbitrage. They purchased the stablecoins at lower prices and redeemed them at full value. The coins have stabilized almost back to full price at the time of writing.
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After Bitcoinâs price soared past $24k, its market cap now sits at over $400B, growing larger than Mark Zuckerbergâs Meta and now resting squarely behind Teslaâs market cap. All in all, the cryptocurrency rose by almost 9% in the past 24 hours after dipping below $20k this past weekend.
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In other news regarding Mark Zuckerbergâs company, it appears that itâs âwinding downâ Instagram NFT support â only 10 months after it launched the feature in the first place. Zuckerberg has been infamously criticized for making the move to the metaverse before any other large tech companies, and potentially before users were even ready for it (or interested in it). Meta lost almost two thirds of its value just last year due to Zuckerbergâs Web3-focused business moves. The company plans âfocus on other ways to support creators, people, and businesses,â according to Stephane Kasriel, Metaâs Commerce and Fintech Lead.
â Trivia Answer
Answer: C.
Monster Energy has seen 83,600% gains over the past 20 years, from $0.12 a stock in 2003 to $100.32 at the time of writing.
Web3 Resource of the Day
Coinbase CEO: How to Win in Crypto | Video Podcast from Bankless ShowsBankless is back with a timely podcast episode featuring Brian Armstrong, the CEO of Coinbase himself. They cover Brianâs thoughts on US crypto regulation and Sam Bankman-Fried, Coinbaseâs plans for its layer 2 blockchain, and the CEOâs 10-year vision for his company. This man could be running the next big crypto bank â check out the video to get a clearer idea of the kind of person he is!
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