Bitcoin Explodes 10% Daily on Positive SVB Developments, Binance $1B Injection: Market Watch
It’s been a while since we last saw so many developments in such a short time within the cryptocurrency market. The most important piece of information seems to be that the US Government, in the face of the Federal Reserve, the Treasury, and the FDIC reassured that depositors in Silicon Valley Bank will be saved.
Bitcoin’s Price Rallies
Bitcoin’s price crashed a few days ago on worries that Silicon Valley Bank won’t be able to honor customer redemption requests.
The bank was shut down on Friday, and the market crumbled. However, it didn’t take long for the US Government to step in. In a joint statement by the Federal Reserve, Treasury Department, and the Federal Deposit Insurance Company, officials promised to make depositors whole:
This step will ensure that the U.S. banking system continues to perform its vital roles of protecting deposits and providing access to credit to h ouseholds and business in a manner that promotes strong and sustainable economic growth.
Markets seem to have been reassured, as Bitcoin’s price, together with that of the broader cryptocurrency industry, rallied.
At the time of this writing, BTC is trading above $22,000, having increased by almost 10% on the day.
Altcoins Also Green
Somewhat expectedly, most of the altcoins are also painted in green, charting similar gains over the past 24 hours.
It’s also important to note that another reason for the astronomic increase in the past hours is that Binance will be converting the remainder of the $1 billion from their Industry Recovery Initiative in BTC, BNB, and ETH.
Commenting on the matter, CZ said:
Given the changes in stablecoins and banks, Binance will convert the remaining of the $1 billion Industry Recovery Initiative funds from BUSD to native crypto, including BTC, BNB, and ETH. Some fund movement will occur on-chain. Transparency.
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I’m a journalist who specializes in investigative reporting and writing. I have written for the New York Times and other publications.