SpecialOpinion from Petr Kasev

Written on 10 March 2023.

Petr Kasev, Head of Education Department of MTHUB (CIS Branch), shares his #SpecialOpinion on the insolvency of SVB:

“On March 10th, Silicon Valley Bank announced its bankruptcy, just shy of its 40th anniversary. Over the past few days, the banking sector has lost more than $0.5 trillion (same as a half of the total crypto market capitalization).

It is all connected with a record-high interest rates in the US since the 1980s. Rates have increased from 0.25% to 4.75%, and they will continue to grow.

This could lead to a wave of bank bankruptcies worldwide and a flow of capital into riskier assets, such as cryptocurrency. The recent surge in the price of BTC confirms this theory. For MTHUB, the growth of the cryptocurrency market capitalization is an excellent opportunity to accelerate the pace of the company's development in the med and long term.”