Viewpoint: The collapse of Signature, SVB, and Silvergate will restrict liquidity in the cryptocurrency industry

ChainCatcher news, Nic Carter, founder of the digital asset company Castle Island Ventures, stated that the government's willingness to support Silicon Valley Bank and Signature Bank means a return to a liquidity-providing model rather than tightening. Historically, loose monetary policy has proven to be a "blessing" for cryptocurrencies and other speculative asset classes, but this instability once again highlights the fragility of stablecoins, as unusual financial conditions may lead them to fall below their fixed value.

Additionally, Carter mentioned, "Bitcoin liquidity and overall crypto liquidity will be somewhat impaired because Silvergate's SEN and Signature's Signet were key for crypto companies to obtain fiat currency over the weekend. Now, crypto companies have few options, and liquidity in the industry will be constrained until new banks step in." He hopes that banks will intervene to fill the gap left by SEN. (CNBC)