After weeks of posting losses, the crypto market turned green this week, with several coins posting substantial gains. Bitcoin, for example, increased in value by 37% over the past seven days to change hands for $27,408 as of this writing, data on CoinGecko shows.
Last week, the largest crypto by market cap shed roughly 11% in response to news that Silicon Valley Bank and Signature Bank had collapsed.
Meanwhile, Ethereum is up 27% over the last seven days, trading at $1,835.
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How Cryptocurrencies Began Surging
The wider crypto market started turning green last Sunday after the Federal Deposit Insurance Corporation ( FDIC), US Treasury, and the Federal Reserve announced that they would ensure depositors of the two fallen banks were made whole.
However, despite the price increases, the crypto space has been significantly hurt by the collapse of these banks, which catered to the industry. To make matters worse, there are conflicting reports that the FDIC has told interested buyers of Signature Bank that it is aiming to scrap the institution’s crypto business.
Crypto-friendly ex-congressman Barney Frank has also claimed that the regulators closed down Signature Bank to convey an anti-crypto message. But the FDIC has insisted that these claims are baseless.
Meanwhile, in the United Kingdom, Jeremy Hunt, the Chancellor of the Exchequer, disclosed that the country’s Finance Department had brokered a deal that saw HSBC buy the Silicon Valley Bank’s British entity for $1.21 with the goal of making whole businesses affected by the bank’s closure.
On top of these regulators’ interventions, many investors shifted to risk-on assets such as tech stocks and crypto this week following signs that suggested Europe’s traditional financial institutions could also be facing a crisis. For example, Credit Suisse revealed on Thursday that it had borrowed a $50 billion loan from the Swiss National Bank to strengthen its liquidity.
Price Analysis of Major Coins
With more funds pouring into the crypto market, most of the top thirty coins by market cap have seen massive increases this week. Besides Bitcoin and Ethereum, Polygon rose 23% to $1.25; Filecoin increased by 34% to $6.49; BNB surged by 26% to $344.02; and Solana went up 29% to $22.40.
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Even USDC, which dropped to $0.87 last weekend due to its issuer’s exposure to the Silicon Valley Bank, regained its dollar peg this week.