The last week was dramatic on Wall Street and in the crypto space, as two crypto-friendly banks – Silvergate and Signature – announced they were going out of business. However, the broader crypto market decided to look past this and rallied strongly.
Bitcoin (BTC), Ethereum (ETH) and the overall crypto market are up 8% today. At press time, Bitcoin is trading up 8.84% at a price of $22,472 and a market cap of $434 billion. Bitcoin alone has added $40 billion to investor wealth in the last 24 hours.
The broader crypto market is showing a healthy upleg adding $70 billion and surpassing the $1 trillion market cap. On Sunday, March 12th, New York state regulators stepped in to announce the closure of another crypto-friendly bank, also known as Signature Bank.
Also, the regulator said depositors will have access to their money on Monday. New York Gov. Kathy Hochul said these measures would instill “greater confidence in the stability of our banking system.”
Some other market analysts also believe that this regulatory action actually helped the crypto market recover today. Rachel Lin, co-founder of SynFutures, a decentralized derivatives trading platform, said:
“The Federal Reserve bailout has boosted market confidence and allayed concerns about the potential collapse of more players, especially given Signature is a big bank within the crypto industry.”
Last week, bitcoin experienced its worst selloff since November 2022 amid factors such as stock sell-offs, mounting crackdowns from US regulators, and some apparent fissures in the banking sector.
Bitcoin and altcoins rally
In addition to bitcoin, altcoins also put on a strong show today. Bitcoin rival Ethereum is up 9% and rocketing above the $1,600 level. Similarly, other top ten altcoins such as BNB, Cardano (ADA), Polygon (MATIC) and Dogecoin (DOGE) have gained between 7% and 10%.
However, the failure of the SVB has severely impacted the stablecoins market as USDC issuer Circle has taken a major hit. Over the weekend, the USDC’s peg to the dollar was faltering, but Circle is taking some key actions to restore it.
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