The Crypto Market Surpasses $1 Trillion As The U.S. Creates A Backstop For SVB Depositors, Sending Bitcoin Up By As Much As 10%‍

On Monday, cryptocurrency prices increased as the United States government took action to protect Silicon Valley Bank depositors and HSBC acquired the lender's U.K. operations. arm.

‍

5% more recently, at $22,374.68, according to Coin Metrics data, bitcoin was. To $1,585.58, ether increased 2%.

‍

In the 24 hours leading up to 2 a.m., the global cryptocurrency market saw gains of more than $70 billion. EDT, surpassing $1 trillion once more on Monday.

‍

As Silvergate Capital, a significant lender to the cryptocurrency industry, collapsed last week, the market for cryptocurrencies has been on a rollercoaster ride. On Wednesday, Silvergate announced that it was closing its bank and reducing staff.

‍

Then, on Friday, Silicon Valley Bank collapsed, marking the largest banking failure since the global financial crisis of 2008.

‍

SVB and Silvergate both invested money in the United States. Treasurys whose value has decreased as the U.S. A rate increase by the Federal Reserve has occurred. To strengthen their capital position, these banks were compelled to sell these notes at a loss.

‍

In order to prevent a spread of the problem to the larger banking industry, American officials shut down Signature Bank on Sunday. Signature Bank was a significant lender in the cryptocurrency market.

‍

Investor confidence has increased as a result of the authorities' actions to support SVB and safeguard depositors in these institutions.

‍

Depositors of SVB will have recourse to all of their money beginning Monday, according to statements made on Sunday by the U.S. Treasury, Federal Reserve, and Federal Deposit Insurance Corporation.

‍

The regulators declared: "No losses linked with the settlement of Silicon Valley Bank would be paid by the taxpayer.

‍

Signature Bank depositors will be "made whole," they added.

‍

According to Vijay Ayyar, vice president of business communications and international at cryptocurrency exchange Luno, "markets have turned euphoric given the Fed declaration over the weekend of a backup plan for banks, and specifically Silicon Valley Bank," a major potential bank run has been prevented.

‍

Moreover, HSBC said that it had decided to purchase the U.K. SVB division for £1 ($1.21). No taxpayer funds have been involved, and client deposits have been protected, the U.K. Treasury stated on Monday.