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Comment by senttoschool | Hacker News Reader

It has a lot to do with SI, nothing to do with SIVB (other than crypto trading with Nasdaq). It also has to do with expectations of higher interest rates.

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It’s both. The S&P 500, Nasdaq, Dow all are suffering and even the 10 year is down because of fears the Fed is breaking something with the bank shocks. People are fleeing stocks (including cryptocurrencies) to hold USD.

> People are fleeing stocks (including cryptocurrencies) to hold USD.

This is a really wild thought in a high inflation environment. Not that I disagree. Equities can lose dollar value on top of the dollar itself losing value. Some portion of it has to be going back to risk-off assets that were not worthwhile in a zero-rate environment.

Volatility can be more damaging than inflation. Cash is king.

I'm actually interested how does one hold USD or any other currency? I mean actually hold. And not end up holding short or long term treasuries and like which seem to have been behind the bank failures.

>People are fleeing stocks (including cryptocurrencies) to hold USD.

People have been doing that for a year now. It's not new. It didn't start happening because of SI and SVB.

Yes, it’s not new, but big fluctuations between day to day can be big news. Until recently actually the stock markets have been doing pretty good YTD.

Crypto market is affected by the following in order of biggest impact to least:

1. Crypto events such as collapse of an exchange

2. Fed interest rates

3. Nasdaq (more than S&P500 and Dow).

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