IDEAS home Printed from https://ideas.repec.org/p/arx/papers/2311.10720.html
   My bibliography  Save this paper

Cryptocurrency in the Aftermath: Unveiling the Impact of the SVB Collapse

Author

Listed:
  • Qin Wang
  • Guangsheng Yu
  • Shiping Chen

Abstract

In this paper, we explore the aftermath of the Silicon Valley Bank (SVB) collapse, with a particular focus on its impact on crypto markets. We conduct a multi-dimensional investigation, which includes a factual summary, analysis of user sentiment, and examination of market performance. Based on such efforts, we uncover a somewhat counterintuitive finding: the SVB collapse did not lead to the destruction of cryptocurrencies; instead, they displayed resilience.

Suggested Citation

  • Qin Wang & Guangsheng Yu & Shiping Chen, 2023. "Cryptocurrency in the Aftermath: Unveiling the Impact of the SVB Collapse," Papers 2311.10720, arXiv.org.
    • Handle: RePEc:arx:papers:2311.10720
    as

    Download full text from publisher

    File URL: http://arxiv.org/pdf/2311.10720
    File Function: Latest version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Jiahua Xu & Krzysztof Paruch & Simon Cousaert & Yebo Feng, 2021. "SoK: Decentralized Exchanges (DEX) with Automated Market Maker (AMM) Protocols," Papers 2103.12732, arXiv.org, revised Mar 2023.
    2. Perdichizzi, Salvatore & Reghezza, Alessio, 2023. "Non-significant in life but significant in death: Spillover effects to euro area banks from the SVB fallout," Economics Letters, Elsevier, vol. 230(C).
    3. Bellavitis, Cristiano & Fisch, Christian & Wiklund, Johan, 2021. "A comprehensive review of the global development of initial coin offerings (ICOs) and their regulation," Journal of Business Venturing Insights, Elsevier, vol. 15(C).
    4. Allen, Darcy W.E. & Berg, Chris & Lane, Aaron M., 2023. "Why airdrop cryptocurrency tokens?," Journal of Business Research, Elsevier, vol. 163(C).
    5. Alexander Lipton & Aetienne Sardon & Fabian Schar & Christian Schupbach, 2020. "From Tether to Libra: Stablecoins, Digital Currency and the Future of Money," Papers 2005.12949, arXiv.org.
    6. Pandey, Dharen Kumar & Hassan, M.Kabir & Kumari, Vineeta & Hasan, Rashedul, 2023. "Repercussions of the Silicon Valley Bank collapse on global stock markets," Finance Research Letters, Elsevier, vol. 55(PB).
    7. Matthew Spiegel, 2011. "The Academic Analysis of the 2008 Financial Crisis: Round 1," The Review of Financial Studies, Society for Financial Studies, vol. 24(6), pages 1773-1781.
    8. Inge Bleijenbergh & Hubert Korzilius & Piet Verschuren, 2011. "Methodological criteria for the internal validity and utility of practice oriented research," Quality & Quantity: International Journal of Methodology, Springer, vol. 45(1), pages 145-156, January.
    9. Yousaf, Imran & Riaz, Yasir & Goodell, John W., 2023. "The impact of the SVB collapse on global financial markets: Substantial but narrow," Finance Research Letters, Elsevier, vol. 55(PB).
    10. Lee, Seungju & Lee, Jaewook & Lee, Yunyoung, 2023. "Dissecting the Terra-LUNA crash: Evidence from the spillover effect and information flow," Finance Research Letters, Elsevier, vol. 53(C).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Galati, Luca & Capalbo, Francesco, 2024. "Silicon Valley Bank bankruptcy and Stablecoins stability," International Review of Financial Analysis, Elsevier, vol. 91(C).
    2. Mehdian, Seyed & Gherghina, Ștefan Cristian & Stoica, Ovidiu, 2024. "Intraday financial markets’ response to U.S. bank failures," Finance Research Letters, Elsevier, vol. 60(C).
    3. Jin, Changlun & Tian, Xiujuan, 2024. "Enhanced safe-haven status of Bitcoin: Evidence from the Silicon Valley Bank collapse," Finance Research Letters, Elsevier, vol. 59(C).
    4. Ali, Shoaib & Naveed, Muhammad & Gubareva, Mariya & Vinh Vo, Xuan, 2024. "Reputational contagion from the Silicon Valley Bank debacle," Research in International Business and Finance, Elsevier, vol. 69(C).
    5. Liu, Xia & Megginson, William & Tran, Nhu & Wei, Siqi, 2024. "Who Loses Most When Big Banks Suddenly Fail? Evidence from Silicon Valley Bank Collapse," Finance Research Letters, Elsevier, vol. 59(C).
    6. Aharon, David Y. & Ali, Shoaib, 2024. "A high-frequency data dive into SVB collapse," Finance Research Letters, Elsevier, vol. 59(C).
    7. Kensuke Ito, 2024. "Cryptoeconomics and Tokenomics as Economics: A Survey with Opinions," Papers 2407.15715, arXiv.org.
    8. Xu, Yuyun & Liu, Zhengyuan & Zhang, Longyao, 2024. "The spillover effect of bank distress: Evidence from the takeover of Baoshang Bank in China," Finance Research Letters, Elsevier, vol. 59(C).
    9. D’Ercole, Francesco & Wagner, Alexander F., 2023. "The green energy transition and the 2023 Banking Crisis," Finance Research Letters, Elsevier, vol. 58(PC).
    10. Azmi, Wajahat & Anwer, Zaheer & Azmi, Shujaat Naeem & Nobanee, Haitham, 2023. "How did major global asset classes respond to Silicon Valley Bank failure?," Finance Research Letters, Elsevier, vol. 56(C).
    11. Naveed, Muhammad & Ali, Shoaib & Gubareva, Mariya & Omri, Anis, 2024. "When giants fall: Tracing the ripple effects of Silicon Valley Bank (SVB) collapse on global financial markets," Research in International Business and Finance, Elsevier, vol. 67(PA).
    12. Li, Sen & Chen, Yan, 2024. "Governing decentralized autonomous organizations as digital commons," Journal of Business Venturing Insights, Elsevier, vol. 21(C).
    13. Yu Zhang & Tao Yan & Jianhong Lin & Benjamin Kraner & Claudio Tessone, 2024. "An Improved Algorithm to Identify More Arbitrage Opportunities on Decentralized Exchanges," Papers 2406.16573, arXiv.org.
    14. Chalmers, Dominic & Fisch, Christian & Matthews, Russell & Quinn, William & Recker, Jan, 2022. "Beyond the bubble: Will NFTs and digital proof of ownership empower creative industry entrepreneurs?," Journal of Business Venturing Insights, Elsevier, vol. 17(C).
    15. Raphael Auer & Bernhard Haslhofer & Stefan Kitzler & Pietro Saggese & Friedhelm Victor, 2024. "The technology of decentralized finance (DeFi)," Digital Finance, Springer, vol. 6(1), pages 55-95, March.
    16. Anton Miglo, 2022. "Choice between IEO and ICO: Speed vs. Liquidity vs. Risk," FinTech, MDPI, vol. 1(3), pages 1-18, September.
    17. Stanley Chege & Gregory Wanyembi & Constantine Nyamboga, 2023. "Enterprise Risk Management Practices in Kenya," Journal of International Business Research and Marketing, Inovatus Services Ltd., vol. 8(1), pages 15-26, April.
    18. Luisa Faust & Maura Kolbe & Sasan Mansouri & Paul P. Momtaz, 2022. "The Crowdfunding of Altruism," JRFM, MDPI, vol. 15(3), pages 1-29, March.
    19. Boukis, Achilleas, 2023. "Storytelling in initial coin offerings: Attracting investment or gaining referrals?," Journal of Business Research, Elsevier, vol. 160(C).
    20. Levy, Daniel & Mayer, Tamir & Raviv, Alon, 2022. "Economists in the 2008 financial crisis: Slow to see, fast to act," Journal of Financial Stability, Elsevier, vol. 60(C).

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:arx:papers:2311.10720. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: arXiv administrators (email available below). General contact details of provider: http://arxiv.org/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.