Bitcoin, the world’s largest cryptocurrency, witnessed a significant surge in price on Monday in a broad-based crypto rally, as US regulators stepped in to bail out customers of Silicon Valley Bank (SVB). The move helped ease fears around failed SVB and Signature Bank, leading to the total value of the crypto market to surpass $1 trillion again.
Bitcoin rises and crypto market tops
Bitcoin rose by 7.3% to $22,108 in the 24 hours until 6:30 a.m. ET, while Ether gained 7.2% to $1,582, according to data from CoinMarketCap. Other cryptocurrencies also saw significant gains, with USD Coin (USDC) up by 2.6%, cardano adding 8.01%, and solana up by 5.6%. The total value of the crypto market increased by 6.1% over the past 24 hours, with $80 billion in volume.
US Regulators Protect Depositors
US regulators made a statement on Sunday assuring depositors that they would “fully protect” their funds in SVB and Signature Bank, following the banks’ closure and control by The Federal Deposit Insurance Corporation (FDIC). The move came after a turbulent few days for SVB, which saw a call for capital fail and a rush of depositors withdrawing their funds.
The statement from the Treasury, Federal Reserve, and the FDIC added that they would protect customers with funds in SVB and make whole those with deposits in Signature Bank. The move helped to restore confidence in the crypto market, which had been hit by fears over the fallout from the failure of SVB and Signature Bank.
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Circle’s Stablecoin Regains Its Peg
Meanwhile, Circle, the company behind USD Coin, announced that all of USDC’s $3.3 billion reserve deposit with SVB would be available on Monday. The stablecoin had lost its peg to the dollar as investors worried about the turmoil at the bank. Circle said that the stablecoin had now regained its peg to the dollar, providing further reassurance to investors.
The recent surge in Bitcoin’s price is indicative of the resilience of the crypto market, which continues to overcome challenges posed by regulatory actions and other external factors. US regulators’ intervention in bailing out SVB customers has provided a much-needed boost to the crypto market, which is likely to see further growth in the coming days.