Cryptocurrency prices increased after the U.S. government guaranteed depositors of bankrupt banks such as Silicon Valley Bank and Signature Bank protection. Bitcoin has surpassed $24,000, and Ethereum has reached $1,680. This resulted in a 14 per cent increase in cryptocurrency market capitalization in a single day, surpassing $1 trillion.
The cryptocurrency market experienced a sharp decline on March 9 to 10. Bitcoin is now worth $20,000, and Ethereum is worth around $1,430. This occurred in the midst of the closures of Silicon Valley Bank, Signature Bank, and Silvergate Capital, as well as a drop in U.S. financial sector stocks.
The prices of Bitcoin jumped 30% since the evening of March 10, to around $26,000 as of March 14. The overall crypto market surpassed $1 trillion in value on March 13, up about 14 per cent day over day, following a rally in the price of bitcoin and other crypto assets.
According to CoinMarketCap data, bitcoin rose 18.4 per cent in the last 24 hours to more than $24,000, while ether rose 15% to around $1,700. The two most valuable cryptocurrencies in terms of market capitalization are trading in tandem. USDC, the second largest stablecoin, recovered about 4% in the last 24 hours after learning that deposits would be protected.
The U.S. Federal Reserve system, on the other hand, announced on March 12 that Silicon Valley Bank depositors would receive relief that would fully protect their deposits. Many experts were concerned that the failure of these major U.S. banks would cause a financial contagion, implying a chain reaction of financial shocks and the failure of other credit institutions. According to experts, the risk of this financial contagion spreading is already lower than it was on March 10, but it is still not zero.
The sources for this piece include an article in Axios.