FDIC Auctions Off Failed Banks – Crypto Restrictions Apply

• The U.S. government and the Federal Deposit Insurance Corporation (FDIC) are auctioning off two failed American financial institutions, Silicon Valley Bank (SVB) and Signature Bank (SNBY).
• Bidders must not cater to cryptocurrency firms if they are to acquire SVB and SNBY, according to unnamed sources familiar with the matter.
• The New York State Department of Financial Services has denied that the recent bank shutdowns have anything to do with crypto, contradicting former U.S. House of Representatives member Barney Frank’s suspicions.

U.S Government Auctions Failed Banks

The U.S government and the Federal Deposit Insurance Corporation (FDIC) are auctioning off two failed American financial institutions, Silicon Valley Bank (SVB) and Signature Bank (SNBY), this week, with bids due by March 17.

Qualifications for Potential Buyers

Sources familiar with the matter said the qualifications to purchase the banks are stringent, and reportedly, the purchasers cannot deal with crypto businesses anymore.

Controversy Surrounds Alleged Crypto Restrictions

Unnamed sources disclosed that bidders must not cater to cryptocurrency firms if they are to acquire SVB and SNBY. This contradicts a statement from the New York State Department of Financial Services denying that recent bank shutdowns have anything to do with crypto — contrary to former U.S House of Representatives member Barney Frank’s suspicions about an „anti-crypto“ message being sent by shutting down these banks.

Auction Management & Details

The FDIC already attempted to auction off SVB last weekend, but no deals materialized, and is now using investment bank Piper Sandler Companies as its managing agent for both auctions of SVB & SNBY, hoping to sell them in their entirety or partially on specific branches & verticals — all depending on offers made by existing chartered banks only .

Conclusion

With bids due on Friday March 17th 2023 , it seems investors will have less than a week left in order for potential buyers who meet all requirements set forth by FDIC in order for them be able compete for bidding & acquiring these two institutions .

Crypto Prices Slump as Powell Warns of Higher Rates

Bitcoin and Ethereum Price Movement

• Bitcoin moved below the $22,000 level on March 8, following U.S. Fed Chair Jerome Powell’s testimony that rates would be higher than anticipated.
• Ethereum also slipped on the news, briefly breaking out of a historic area of support at $1,550 earlier in the day.
• BTC/USD fell to a low of $21,964.99 earlier in today’s session, while ETH/USD marginally moved to a low of $1,543.13 during today’s session.

Powell Warns of Higher Rates

Yesterday U.S Federal Reserve Chair Jerome Powell warned that interest rates will be higher than initially anticipated when speaking in front of the Senate Banking Committee. This news caused both Bitcoin (BTC) and Ethereum (ETH) to slip in price as markets reacted to this news.

Bitcoin Falls Below $22k

BTC/USD dropped below the key support point at $22,300 which coincided with the relative strength index (RSI) falling from a floor of its own at 42.00 down to 40.36 with a lower floor at 38.00 being a possible target for bears if this point is reached then it is likely that BTC will be trading close to the $21,600 mark .

Ethereum Slips More Mutedly

Ethereum’s decline was more muted than its counterpart however there was still some movement; ETH/USD moved from peak levels around $1,568 down to lows around 1,543 after briefly breaking out from an area of historic support around 1,550 and currently is trading above this level at around 1,557 with RSI hovering above its own decked floor currently set at 43 points having been in place since February 13th .

Conclusion

The comments from U.S Federal Reserve Chair Jerome Powell yesterday have caused Bitcoin and Ethereum prices to move significantly lower today with further potential downside should key areas fail to hold as support however current signs suggest that bulls may attempt another push following this week’s dip in price