BTC Surges 9% Following US Agencies’ Statement Regarding Silicon Valley Bank

The price of the most popular cryptocurrency, Bitcoin, has increased after United States regulators issued a joint statement assuring depositors of the fallen Silicon Valley Bank will be made whole.

As of this writing, Bitcoin is priced at $24,228. The figure represents a 9% increase in the past day and a 1% surge in the past hour. On the other hand, Ethereum is up 5.6% in the past 24 hours and has increased by 0.9% in the past hour. The second largest crypto by market cap is trading at $1,674, according to data from CoinGecko.

The wider crypto market is largely green, with dog-themed coins like Dogecoin and Shiba Inu rising by 3.3% each over the past day. DOGE is trading at $0.0719, while SHIB is changing hands for $0.00001098.

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What Triggered Market Downturn Last Week?

The digital asset market went in the red last week after Silicon Valley Bank’s collapse prompted fears among investors. On Friday afternoon, Bitcoin’s price dropped to $19,660 due to increased sell pressure.

Last Thursday, Silicon Valley Bank faced a $41 billion bank run, forcing the US regulators to shut down the financial institution the following day. As crypto firms started to announce exposure to the bank, most leading cryptocurrencies began plunging.

One of the notable price declines came from USDC. When its issuer, Circle, revealed it had cash reserves of the token stuck in Silicon Valley Bank, the stablecoin lost its dollar peg hours later, falling to the $0.88 mark.

On Monday, depositors of Signature Bank, a crypto-friendly institution, woke up to unexpected news that New York State financial regulators had decided to close down the bank on Sunday evening.

US Authorities to Allow Silicon Valley Bank and Signature Depositors Withdraw Funds

American agencies, including the Federal Deposit Insurance Corporation, the US Treasury, and the Federal Reserve, said in a joint statement that all depositors of Signature Bank and Silicon Valley Bank would be able to access their money this week. The agencies also reported the teams managing the two banks were fired.

Meanwhile, USDC has managed to regain its peg, boosting hopes of investors pumping funds into the crypto space again.

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