5 Important Things You Should Know Today For The Rest Of The Day Are Cryptocurrencies Going Up?

The cryptocurrency market suffered heavy losses, hit by the blockchain bankruptcy of the US banking system. Action is being taken now. Three banks guarantee customer deposits, but fear more banks will suffer losses from low-interest long-term U.S. debt. Three banks that failed to properly adjust their balance sheet risks have closed their doors.

US banking crisis

Stocks open at 3:30 p.m. and are likely to open higher on Monday as investors assess the impact of the federal stimulus package. On Friday, the Dow Jones Industrial Average fell 1.07%, closing down 4.44% for the week, the worst weekly performance since June. The S&P 500 fell 1.45% on Friday and 4.55% for the week, while the Nasdaq Composite fell 1.76% for the day and 4.71% for the week.

Biden Banking Speech

Second, at 16:00, US President Joe Biden will give an assessment speech on the status of the banking system. Investors may be relieved that the reassuring statement is here. It could pave the way for a surprise announcement that the Federal Reserve should ease its tightening monetary policy for a broader recovery.

guaranteed deposit

Third, federal regulators stepped in this weekend to protect SVB clients. The fact that the guaranteed amount was $250,000 prompted the American citizen to withdraw assets held at other banks in this messy process. The plan envisions savers being insured by the FDIC and not dependent on bailouts or taxpayer money, according to officials. The Treasury, Federal Reserve and FDIC issued a joint statement saying they were “taking decisive action to protect the U.S. economy by enhancing public confidence in our banking system.” Those with money in the bankrupt bank will not lose anything.

What will happen to cryptocurrencies?

Fourth, cryptocurrencies have moved. The cryptocurrency is on the rise, with a valuation of more than $70 billion in 24 hours on news of the government’s support for the SVB. Cumulative value once again surpassed $1 trillion. Vijay Ayyar, vice president of corporate development and international at cryptocurrency exchange Luno, said:

“Given the Fed’s announcement over the weekend to support the banks, especially Silicon Valley Bank, the market has become enthusiastic because they know depositors’ money is safe and a huge potential bank run has been avoided.”

The rise can continue.

UK takes action

HSBC announced on Monday that it has acquired SVB’s UK subsidiary for £1. As of Friday, the sale will protect deposits of about £6.7bn of SVB UK customers. HSBC Group Chief Executive Noel Quinn said:

“This transaction excludes the assets and liabilities of SVB UK’s parent company, but strengthens our merchant banking franchise and enhances our ability to service innovative and fast-growing companies in the UK and internationally, both technology and life Science. SVB UK customers can continue to bank as usual knowing their deposits are backed by the strength, safety and security of HSBC.”

Information source: compiled from COIN-TURK by 0x information.Copyright belongs to the author Fatih Uçar, without permission, may not be reproduced

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