The unprecedented injection of liquidity into the market from the Federal Reserve during that period was an attempt to stimulate an ailing economy.
But before that, crypto, which closely tracked the stock market’s movements, went into a downward spiral soon after. Bitcoin crashed from $8,000 to $3,750 in a matter of hours.
It was the “loaded” retail and amateur players that tapped crypto and meme stocks as markets recovered. Eventually, the asset class soared to new heights in 2021. While dramatic blow-off peaks and drawdowns of over 80 are not out of the norm, the last bull run managed to capture the attention of investors, both big and small, like no other.
Several public companies made significant investments in crypto. Overall, it was a record-breaking year for space. While most of those gains have been wiped out, the recent events in the banking sector can’t help but point out how the tables have turned.
Fall of Banks and Financial System
The now-collapsed Silicon Valley Bank (SVB) made it to the Forbes magazine’s annual ranking of the best banks in America. Not once, not twice, but for the fifth year in a row. It was also featured in the inaugural Financial All-Stars list.
