It has been a while since we have seen so many developments in such a short time within the cryptocurrency market. The most important information seems to be that the US government, in the face of the Federal Reserve, the Treasury and the FDIC, assured that depositors in Silicon Valley Bank will be saved.
Bitcoin Price Rallies
Bitcoin’s price plunged a few days ago on concerns that Silicon Valley Bank might not be able to meet customer redemption requests.
The bank closed on Friday and the market collapsed. However, it didn’t take long for the US government to intervene. In a joint statement from the Federal Reserve, the Treasury Department and the Federal Deposit Insurance Company, officials promised that depositors would be whole:
This step will ensure that the US banking system continues to perform its vital functions of protecting deposits and providing access to credit to households and businesses in a manner that promotes strong and sustainable economic growth.
The markets appear to have calmed down as the price of Bitcoin, along with the broader cryptocurrency industry, rallied.
As of this writing, BTC is trading above $22,000, having risen nearly 10% on the day.
Altcoins also green
Unsurprisingly, most altcoins are also painted in green, posting similar gains over the past 24 hours.
It is also important to note that another reason for the astronomical rise in the past few hours is that Binance will convert the rest of the $1 billion from its Industry Recovery Initiative into BTC, BNB, and ETH.
Commenting on the matter, CZ said:
Given the changes in stablecoins and banks, Binance will convert the remainder of the $1 Billion BUSD Industry Recovery Initiative funds to native crypto, including BTC, BNB, and ETH. Some movement of funds will occur in the chain. Transparency.
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