The value of tokens such as bitcoin and ether rose on Monday after hitting week-lows on Friday, part of a broader rally in cryptocurrency prices as markets reacted to the broader fallout from the collapse of the Silicon Valley bank and fears over a possible recovery. widespread financial crisis.
Bitcoin, the world’s largest cryptocurrency by market capitalization, was trading at around $22,300 on Monday morning, up nearly 9% from the day before.
Ether, the world’s second-largest cryptocurrency by market capitalization, was trading at around $1,600 on Monday, up nearly 7% from Sunday.
The prices of both tokens fell to nearly two-month lows on Friday following the collapse of a crypto-friendly bank. silvergate and tech lender Silicon Valley Bank.
Other major cryptocurrencies by market capitalization—including Binance’s BNB, Cardano’s ADA, and Solana’s Sol—also jumped between 4% and 8% on Monday.
The stablecoin USD Coin (USDC) – which is pegged one-to-one to the US dollar – was trading at $0.96 on Monday morning, largely after recovering losses from the weekend. Lost Its dollar peg and fell as low as $0.88.
$1.05 trillion. how much is it worth according to the total cryptocurrency market coingeco, The figure reflects a broader crypto market rally, up 7% from the day before, after regulators intervened to guarantee SVB deposits on Sunday. Crypto market cap fell below $1 trillion last week as the Silvergate and SVB failures ignited widespread concerns over the stability of financial markets.
Several events dampened enthusiasm for cryptocurrencies in the past week. Silvergate, A Major Lender In The Crypto Sector, Announces Plans ruin Its bank and wind down operations on Wednesday. SVB, at that time 16th largest bank A major lender in the country and in the tech space collapsed on Friday. another bank, signature, obeyed Sunday at its feet. failures, the biggest and second only to the 2008 financial crisis—and third-The biggest US failure has rocked the financial markets, including cryptocurrencies. Confidence was somewhat restored on Sunday, when federal regulators moved to protect all deposits at SVB. Signing customers are also safe, Treasury Secretary Janet Yellen Said,
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Officials who have ruled out the 2008-era investor bailout remain confident the financial system is sound, but concerns remain over the wider fallout from the collapse. Tech companies, in particular, are worried about the loss of such a major player in the ecosystem and foreign regulator Are Supervision Status of potential spillover effects. The UK subsidiary of SVB, a leading lender to tech and biotech startups in the country, was on Monday rescued by banking giant HSBC. The risk is not over for other US banks either. Shares of First Republic Bank plunged nearly 65% in premarket trading in New York on Monday morning Thus Concerns over the bank's liquidity continued despite it issuing statements reassuring investors that $70 billion was available from sources including JPMorgan Chase and the Federal Reserve.
Broken banks put pressure on Silvergate and SVB crypto, leaders end week down 10% (Forbes)
What the failures of Signature, SVB and Silvergate mean for the crypto sector (CNBC)
Credit: www.forbes.com /