Bitcoin prices have rallied over the past week amid the escalating U.S. banking crisis and efforts by the federal government to mitigate its impact.
Bitcoin (BTC) was able to breach the $24,000 mark on Tuesday, indicating a level of stability in the cryptocurrency market.
The value of the alpha crypto has risen 10 percent in the past 24 hours after falling to its lowest point since January, according to cryptocurrency market tracker Coingecko.
The Fed launched an emergency lending strategy to allay public concerns after three banks failed. Silvergate Bank, which is heavily involved in the cryptocurrency industry, shut down its cryptocurrency payment platform on March 3 and announced its liquidation last Wednesday.
Bitcoin trades at $24,425
Silicon Valley Bank announced Monday that it would be unable to meet its financial commitments. Days later, federal regulators closed Signature Bank. During that time, Bitcoin surged 9% in a week.
The latest data shows that Bitcoin is trading at $24,425 at the time of writing.
Source: Coingecko
Bitcoin continued to rise on Tuesday, boosted by a decision by U.S. authorities to act as a lender of last resort, effectively guaranteeing all uninsured U.S. bank accounts.
Bitcoin, the largest cryptocurrency by market value, has gained about 25 percent since Friday. The rally was quite unexpected given the collapse of SVB and Signature bank, both of which were considered crypto-friendly.
How USDC is performing
The broader market also saw USDC weaken over the weekend, with the cryptocurrency losing support against the greenback and dipping below the 0.92 level on Saturday before recovering the peg on Monday as news of the bank’s woes spilled over to the cryptocurrency market.
At the same time, data from Nansen shows that the amount of USDC on exchanges has risen sharply in recent days. The total supply on exchanges is up 8% from a week ago. Incidentally, the largest USDC deposit the previous day was 18.3 million, a 41% increase from the previous 13 million.
According to Edward Moya, senior market analyst at Oanda:
“Bitcoin is rising in value as U.S. Treasury yields plummet on financial stability concerns. Federal officials intervene to prevent another massive bank run as skepticism about traditional banking rises among some Americans .”
BTCUSD broke the $24,000 level and is now trading at $24.389 billion on the daily chart | Chart: TradingView.com
Cryptocurrency Market Cap Returns to $1 Trillion Level
Bitcoin, Ethereum Show Signs of Recovery, Crypto Market Cap Returns to Trillion Dollars #TechNews
— NIDE INDIA (@nideindia) March 13, 2023
After falling sharply, the global cryptocurrency market rebounded over the weekend and hit $1.02 trillion. The recent government announcement to protect the funds of all Silicon Valley bank depositors is a key factor that has had a positive impact on the entire cryptocurrency market.
Given the current data, it’s hard to argue against the notion that the SVB and Signature Bank fiasco could serve as a buzzword for the adoption and promotion of cryptocurrencies in a world where fiat ownership is already a reality. Some are obsolete and in some cases “strongly discouraged”.
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