Amid the economic turmoil, major cryptocurrencies have seen an increase in value. In response to US government plans to protect account holders of Silicon Valley Bank (SVB) and Signature Bank after their bankruptcy, Bitcoin and several other cryptocurrencies have seen major percentage increases on the stock exchange.
Bitcoin rises after SVB bankruptcy (and US response)
The collapse of SVB went around the world, bringing down the stock exchanges everywhere and scaring account holders. But the Federal Reserve released some statements Sunday that assure Silicon Valley Bank account holders that their deposits will be fully protected. Regardless of whether they are insured or not. This has rreduced the risk of bank contagion than on Friday, even if he didn’t cancel it.
But the crypto market is on the rise again. Due to an increase in the price of Bitcoin and other cryptocurrencies, the overall cryptocurrency market passed the $1 trillion mark on Monday. An increase by 14% on a daily basis.
Bitcoin e Etherthe two largest cryptocurrencies by market cap, saw an increase of 18.4% and 15% respectively in the last 24 hours.
Also there stablecoin USDC sees a 4% increase in the last 24 hours following news that deposits would be protected. The market capitalization of USDC is approximately $40.5 billionwith a daily traded volume of $10.9 billion.
Crypto prices were particularly low also due to the bank closure Silvergate Capital. The failure of Silicon Valley Bank and the closure of Signature Bank had marked another major blow to confidence. But the Federal Reserve’s moves have led crypto investors to return to investing.