FTX Fallout Spreads to Silicon Valley Bank and Triggers Banking Crisis
• Silicon Valley Bank (SVB) experienced a bank run due to FTX fallout and customers chasing higher returns, forcing it to sell bonds at a loss
• SVB's $1.8B bond loss triggered a panic that ended with the FDIC having to take over the bank
• The crisis spread to other banks like First Republic and Credit Suisse, requiring bailouts
• The crisis was negative for the US Dollar as it changed expectations that the Fed would pause rate hikes
• The crisis was bullish for gold due to its safe haven status and lower rate hike expectations reducing the opportunity cost of holding it