Bitcoin

After a tense Thursday and Friday, crypto investors were reassured by Federal regulators&#39; decision to fully restore Silicon Valley Bank (SIVB) deposits and Circle&#39;s pledge to replace any USDC reserves.Bitcoin traded at $22,482, up 9.3% in 24 hours. The California Department of Financial Protection and Innovation took down SIVB, a major technological player, after clients withdrew their money in droves, sending the largest cryptocurrency below $20,000 early Friday (UTC). The second-largest U.S. failure was SIVB.On Sunday, U.S. Treasury Secretary Janet L. Yellen, Federal Reserve Board Chair Jerome H. Powell, and FDIC Chairman Martin J. Gruenberg announced that Yellen had &#34;approved actions enabling the FDIC to complete actions in a manner that fully protects all depositors&#34; at SIVB after considering FDIC and Federal Reserve recommendations and consulting with President Joe Biden..In a weekly report, Mark Connors, head of research at crypto asset manager 3iQ, called the agencies&#39; action &#34;risk asset friendly at first blush&#34; but cautioned, &#34;Too many moving parts and M2 [monetary aggregate of currency and coins, savings deposits and shares in mutual money market funds] STILL contracting.&#34;Connors added: &#34;The Fed maintains market control. Guaranteeing overnight bank deposits in 2008 is what they announced tonight.&#34;Ether rose 9.6% to $1,614, up from Saturday. Several major cryptocurrencies that suffered last week due to SIVB&#39;s fall rallied over the weekend, with their biggest gains on Sunday. APT, Aptos&#39; layer 1 protocol token, and ADA, Cardano&#39;s native coin, rose over 13% and 11%, respectively. .Circle Internet Finance, a payments technology business, announced on Saturday that it will &#34;fill any gap&#34; in the assets supporting its stablecoin USDC if Silicon Valley Bank did not release its $3.3 billion cash reserve. Circle pledged to “stand behind USDC and offset any gap utilizing business resources, engaging external finance if necessary” in a blog post. Before the announcement, the stablecoin dropped to $0.88 but was trading above $.99 cents.The tech-heavy Nasdaq and S&amp;P 500 fell 1.8% and 1.4%, respectively, amid banking sector concerns. The S&amp;P fell 5%, its lowest week since September 2022. 3iQ&#39;s Connors said that long-term regulatory action to protect consumers&#39; funds would continue a &#34;game of regulatory whack-a-mole&#34; that would accelerate stablecoin regulation and banks consolidation.

First Mover Asia: Silicon Valley Bank Failure Highlights Small Banks’ Vulnerability; Bitcoin Soars Past $22.5K

ItsBitcoinWorld

Andere artikelen gepubliceerd op 14 mrt 2023

Charity DAO Announces Joining Forces with XPLUS to Expand Charitable Communities

NeoCortexAi Public Sale

Vitalik Buterin-Named Wallet Sent 500 Ether to Mint RAI, Buy USDC Amid Depegging

Euler Finance Blocks Vulnerable Module, Working on Recovering Funds

[ANN] AirCoinDAOLabs available on Binance feed.

USDC Bounces Back Toward $1 Peg after Fed Announcement

Meld je aan voor onze gratis nieuwsbrief voor dagelijkse crypto-updates!