Bitcoin Crosses $24,000 amidst Banks Failure in US
It has been happy trading hours for investors in the cryptocurrency markets as prices extended gains Monday. A recent rally on digital assets was lifted over the weekend as investors assessed the fallout from the collapse of Silicon Valley Bank.
Also, the crypto-friendly Signature Bank crash weighs while the market priced in a commitment by federal regulators to backstop depositors at both institutions and across the banking system.
In a rude shock, these two banks have been overrun amidst Federal Reserve’s persistent interest rate hikes in an effort to fight inflation.
At the press time, Bitcoin was up 18.34% at $24,417 over the past 24 hours. Ethereum (ETH-USD) was trading at $1,690, up 14.87% in the past 24 hours, according to CoinDesk.
“Bitcoin is bouncing back after Federal regulators intervened to prevent further bank runs following the collapse of Silicon Valley Bank,” said Edward Moya, an analyst at OANDA, in an email.
“The collapse of SVB has led to the biggest yield drop in decades and that is great news for cryptos. All of a sudden financial instability risks are here and that has many traders thinking the Fed’s tightening work is done.”
U.S. equities markets were trading higher, though price action was choppy, with the Dow Jones Industrial Average and S&P 500 up 0.8%. The Nasdaq Composite 100 was up 1.2%. Naira Steadies as Banks Issue Update on FX Purchase
The closure of Signature Bank comes just a week after Silvergate Bank, which was also significant to the crypto industry, wound down operations. # Bitcoin Crosses $24,000 amidst Banks Failure in US