Bitcoin rallies over 18% in 24-hour span in wake of SVB crisis


The value of major cryptocurrencies rose Monday in the wake of U.S. government plans to protect Silicon Valley Bank and Signature Bank depositors.

The Federal Reserve issued a pair of statements on Sunday with one clear message: Silicon Valley Bank’s depositors, both insured and uninsured, will receive help in a manner that will “fully protect” their deposits.

The risk of a banking contagion was lower at the start of the week than last Friday, but not zero.

Following a rally in the price of bitcoin and other crypto assets, the overall crypto market surpassed $1 trillion in value on Monday, up about 14% day over day.

In the past 24 hours, bitcoin rose 18.4% to over $24,000, while ether rose 15% to about $1,700, CoinMarketCap data showed. The two cryptocurrencies, which are the largest by market capitalization, are trading in parallel with one another.

An image of bitcoin and ether prices compared to USD in the past 24-hours

Image Credits: CoinMarketCap (opens in a new window)

USDC, the second largest stablecoin, also recovered about 4% in the past 24 hours following the news that deposits would be protected, CoinMarketCap data showed.

The alleged stablecoin depegged from its $1 peg for three days, going as low as 88 cents, after uncertainty circulated around the $40 billion USDC empire and the company shared that $3.3 billion, or about 8.2%, of its total supply of reserves were held in SVB.

Circle announced the reserve risk was “removed” since the funds became available on Monday morning.

“Trust, safety and 1:1 redeemability of all USDC in circulation is of paramount importance to Circle, even in the face of bank contagion affecting crypto markets,” Jeremy Allaire, co-founder and CEO of Circle, said in a statement. “We are heartened to see the U.S. government and financial regulators take crucial steps to mitigate risks extending from the banking system.”

USDC’s market capitalization is about $40.5 billion, with $10.9 billion in daily traded volume, down 1% in the past 24 hours, according to CoinMarketCap data. At the time of publication, USDC was millicents away from its $1 peg at $0.993, up 3.9% in the past 24 hours.

The crypto market, alongside other major industries, had a volatile week after Silvergate Capital, one of the largest banks to provide services to crypto companies, shared it was winding down operations and liquidating its banking division.

Shortly after, Silicon Valley Bank collapsed on Friday, and Signature Bank, a major crypto lender, was shut down by regulators on Sunday.

This market turmoil has seemingly propped up the crypto market, however, as traders responded positively to the news and the overall market cap rose on Monday.


#Bitcoin #rallies #24hour #span #wake #SVB #crisis

mrB

Related Posts

Elon Musk says Twitter’s For You page will only recommend verified accounts

Musk claims the move is “the only realistic way to address advanced AI bot swarms taking over.” Verified users are also going to become the only accounts…

Tesla brings back European referral program as end of Q1 nears

Tesla is bringing back its referral program to Europe, a strategy that taps into the brand loyalty of customers as it seeks to preserve market share and…

FBI Spent Tens of Thousands of Dollars on Bulk Data Collection

The FBI’s cybersecurity division has been purchasing bulk internet data from a little-known tech firm based in Florida, Motherboard reports. Team Cymru, which calls itself a “global…

Plastics Are Devastating the Guts of Seabirds

This might be why her team got contrasting results in their analysis: The more individual microplastics in the gut, the greater the microbial diversity, but the higher mass of…

‘Yellowjackets’ connects Seasons 1 and 2 with ‘Beaches’

You’ve got to laugh a little, cry a little, until the ritualistic cannibalism rolls by a little. That’s the story of, that’s the glory of Yellowjackets. In…

MultiVersus’ open beta is shutting down, but the game is set to return in 2024

Warner Bros. Games is shutting down MultiVersus’ open beta ahead of a full release targeted for early 2024. The open beta for the WB-themed free-to-play Super Smash…

Leave a Reply

Your email address will not be published. Required fields are marked *