The value of three types of digital money, called Bitcoin, Ethereum, and Solana, went down a lot in the past day and week. Bitcoin went down 8.5% in the past day and 11.2% in the past week. Ethereum went down 8.8% in the past day and 10.7% in the past week. Solana went down 5.7% in the past day and 18.5% in the past week.
What happened this week with crypto
Big things happened last week with two banks that deal with special money called cryptocurrencies. One of them fell down and the other might fall down too. These banks help rich people and groups invest in cryptocurrencies and they also run some public investment funds. The one that fell down was mainly for cryptocurrencies, while the other one does other kinds of business too.
Some people got worried because many small companies use Silicon Valley Bank to help them grow, and this week lots of people wanted to take their money out of the bank all at once.
The thing we’re most worried about is something called “contagion.” That means if one thing goes wrong, it could make other things go wrong too. If that happens, it could be harder for people to borrow money and companies might not want to invest. This could hurt a lot of small companies that rely on money from investors in a place called Silicon Valley.
Lots of people in a place called Silicon Valley have given money to new companies that make digital money. But if those companies have problems with rules and money, they might not be able to make the digital money work better. Some people are worried that if a bank in Silicon Valley has problems, it will make the digital money even worse.
What does this mean now for crypto?
It’s very important for banks and other money places to be careful with their money because if they make a mistake, it can affect everyone’s money. This happened before and it caused problems for lots of people.
Good news! In February, lots of new jobs were created in the US. But more people were also looking for jobs, which means the number of people without jobs went up a little bit. Even though some parts of the economy aren’t doing well, it hasn’t affected the whole economy yet.
People who want to invest in something for a long time should think about buying good cryptocurrencies now, even though their prices are low. Even though the value of these digital coins has gone down, the industry they come from is still growing and making new things, which will make the coins worth more in the future.
I think something called blockchain will be really important in the future, even though things might not be going well right now. There are two special kinds of blockchain that lots of smart people are working on, and I want to invest in them if things keep getting worse.
SVB Financial helps The Motley Fool with money and banking stuff. Travis Hoium has some Ethereum and Solana money. The Motley Fool likes Bitcoin, Ethereum, SVB Financial, and Solana. The Motley Fool tells people when they have money in things they talk about.
The Motley Fool helps people with their money by giving them information and advice. They work with USA TODAY but make their own stuff.
The Motley Fool is suggesting that there are 10 investments they think are better than Bitcoin.
When a group of really smart people who are really good at picking stocks give advice, it’s a good idea to listen. They have a newsletter called Motley Fool Stock Advisor that has done really well for over 10 years and has made more money than the regular stock market.
Some grown-ups picked the 10 best things to buy if you want to make more money. They didn’t pick Bitcoin, but they picked other things that they think are even better. For more detail click the link.