It has been a while since we have seen so many developments in such a short time in 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, reassured that the depositors of Silicon Valley Bank would be saved.
Bitcoin Price Rallies
Bitcoin’s price crashed a few days ago on concerns that Silicon Valley Bank might not be able to honor customer refund requests.
The bank was closed on Friday and the market crashed. However, it did not 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 to return depositors whole:
This step will ensure that the U.S. banking system continues to play its vital role of protecting deposits and providing access to credit to households and businesses in a way that supports strong and sustainable economic growth.
Markets appear to have been reassured as the price of Bitcoin, as well as that of the broader cryptocurrency industry, has rallied.
As of this writing, BTC is trading above $22,000, having risen nearly 10% on the day.
Altcoins also green
Somewhat expectedly, most altcoins are also painted green, seeing similar gains over the past 24 hours.
It is also important to note that another reason for the astronomical increase in the past few hours is that Binance will be converting the remaining $1 billion from its industry stimulus initiative into BTC, BNB, and ETH.
Commenting on the question, CZ said:
Given the changes in stablecoins and banks, Binance will convert the remaining $1 billion Industry Recovery Initiative funds from BUSD to native crypto, including BTC, BNB, and ETH. Some fund movements will occur on a chain. Transparency.
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