Silicon Valley Bank Crash, $3.57 Million Stock Sold Within The Last Two Weeks

Key Points:

• Before the collapse of Silicon Valley Bank, $SIVB , the CEO sold $3.57 million of stock within the past two weeks.
• This trader made around 2000% in three days after pushing SIVB down with 100% bearish warning and leaving his position today.
• about 95% of Silicon Valley Bank deposits are uninsured FIDC.
• Nearly half of all US venture capital-backed startups are related to Silicon Valley Banks.
• Circle’s USDC fell into the abyss at $0.9364 after announcing a $3.3 billion exposure to Silicon Valley Bank.

The Silicon Valley Bank is said to have foreseen their end so its CEO sold $3.57 million in stocks within the past two weeks.

According to Unusual Whales, before the collapse of Silicon Valley Bank, $SIVB , its CEO sold $3.57 million of stock within the past two weeks.

Silicon Valley is the 16th largest bank in the United States, holding $210 billion in assets. Before the closure and forfeiture orders were issued by US authorities, the stock price of $SIVB was down 60%.

The CEO of Silicon Valley Bank, Greg Becker, released a statement trying to reassure investors and entrepreneurs on Thursday afternoon. The company did not open for trading at 9:30 a.m. after its stock fell 62% in premarket trading.

The bank is said to be in talks to sell itself after trying to raise capital without success, according to CNBC. A hired advisor is also hired by the bank to see if a sale is possible. All those efforts failed.

In addition, before the collapse of Silicon Valley Bank, $SIVB, the CEO sold $3.57 million of shares within the past two weeks.

Meanwhile, the flow on $SIVB has been declining for a while, since at least Feb. 15. People have pushed SIVB down with 100% bearish warnings.

However, take a look at the announcements open in the last ten days. You will see mostly bearish traders, with many trades open (e.g: new positions).

Traders have been out of their positions since today. This trader made around 2000% in three days.

Besides, as of December, about 95% of Silicon Valley Bank deposits were uninsured FIDC, according to CNBC. Nearly half of all US venture capital-backed startups are related to Silicon Valley Banks, according to Bloomberg.

SIVB is now federally controlled. Silicon Valley Bank, $SIVB, has been shut down by regulators, which are now responsible for the bank’s deposits, according to a release submitted by the Federal Deposit Insurance Corporation.

Affected by these negative news, the stablecoin market has seen a series of peg losses to the $1 mark. The hardest hit was that the price of USDC/USDT fell to $0.9364 on Coinbase as investors rushed to jump from USDC to USDT when it was no longer possible to convert directly to USD. This is the lowest price threshold since the stablecoin was born in 2018.

Stablecoin company Circle said the amount affected by the collapse of Silicon Valley Bank was $3.3 billion, accounting for 8.25% of total assets of $40 billion backed by USDC, much higher than previously predicted. This means Circle could incur a loss of up to $1.2 billion.

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