The cryptocurrency market rose this Monday driven by the Federal Reserve’s bailout of the United States banking system and dispel the specter of a generalized financial crisis.
Bitcoin, the largest crypto by market capitalization, once again surpassed the $24,000 after he drilled the US$20,000 last Friday in the midst of the collapse of Silicon Valley Bank.
Over the weekend, the US government pledged to protect the bank’s deposits and launched a new program that offers banks access liquidity to meet needs of the depositors.
Joe Biden spoke about the bank crisis and assured that the system is “safe”
This Sunday March 12 also fwas closed by the financial regulars from the state of New York Signature Bank and early March the Silvergate. The avalanche of bank hills once disturbed the crypto market, with several companies in the sector exposed, such as Circle Internet Financial, Coinbase Global Inc and Paxos Inc.
The biggest gains among the smallest cryptocurrencies, known as altcoins, also dropped– Cardano’s previous 8.5% rise dropped to 3.3% and Tron dipped to a 7% rise.
Bitcoin, for its part, is recovering from its worst week since last November, in which the sale of shares, nervousness in the banking sector and the escalation of measures regulation on the crypto market in the United States combined to hurt investor sentiment.
After the Silicon Valley Bank accident, stock markets fall around the world
The bankruptcy of the Californian bank left a domino effect in the stablecoin market, after Circle, one of the largest operators of USDC, revealed that he had $3.3 billion of reserves that backed the token stored in the bank.
So the news of the SVB shutdown used that the Circle stablecoin fell well below its dollar peg. causing a stir in the industry. By this Monday, the USDC had already recovered and was trading around 99 cents.
The token’s depreciation will follow a huge increase in volumes on decentralized exchanges on Saturday, thanks to its strong role as a trading pair in showers squares. Uniswap and Curvethe two main decentralized exchanges, registered their highest daily volume of operations that day with some US$13.3 billion and US$8 billion in volumerespectively.
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