Last week has been dramatic on Wall Street and the crypto sector as two crypto-friendly banks – Silvergate and Signature – announced shutting down their operations. However, the broader crypto market has decided to look past this, making a strong bounce back.
Bitcoin (BTC), Ethereum (ETH), and the overall crypto market are up by 8% today. As of press time, Bitcoin is trading 8.84% up at a price of $22,472 and a market cap of $434 billion. Thus, Bitcoin alone has added $40 billion to investors’ wealth in the last 24 hours.
The broader crypto market is showing a healthy bounce adding $70 billion and moving past the $1 trillion market cap. On Sunday, March 12, the New York state regulators stepped in to announce the close of another crypto-friendly bank aka the Signature Bank.
Also, the regulator said that depositors will have access to their money on Monday. New York Gov. Kathy Hochul, said that these actions would provide “increased confidence in the stability of our banking system”.
Some other market analysts also believe that this regulatory action has in fact helped the crypto market in its bounce back today. Rachel Lin, co-founder of SynFutures, a decentralized derivatives trading platform said:
“The Federal Reserve’s rescue plan has bolstered market confidence and allayed concerns about the potential collapse of additional players, particularly given that Signature is a major bank within the crypto industry”.
Last week, Bitcoin faced its worst sell-off since November 2022, amid factors like equity selloff, rising US regulators crackdown, and some appearing cracks in the banking sector.
Bitcoin and Altcoins Rally
Along with Bitcoin, altcoins too have posed a strong show today. Bitcoin competitor Ethereum is up 9% shooting past $1,600 levels. Similarly, other top ten altcoins like BNB, Cardano (ADA), Polygon (MATIC), and Dogecoin (DOGE) have gained between 7-10%.
The SVB failure has, however, majorly impacted the stablecoins market with USDC-issuer Circle facing a major blow. Over the weekend, USDC’s peg to the Dollar was seen fumbling, however, Circle is taking a few key measures to restore that.