Change of scenery in the crypto market. From the gloom and fear of the previous days, due to the recent bank failures of Silvergate Capital (SI) at first and Silicon Valley Bank (SVB) later, we have moved on to the big upheaval.
Bitcoin not only recovered above $20,000, but comfortably topped $22,000, as we can see on the hourly chart. In a counterattack that lasted over the weekend and intensified yesterday afternoon, it quickly erased recent losses. The resistance at 21,600 lasted only a few hours. The one that proved resilient was at the $22,600 level.
The other cryptocurrencies show a similar picture. The total market capitalization of cryptocurrencies from the $875 billion that had plunged on Friday, with a sharp breakout, especially from Sunday afternoon into the early hours of Monday morning, reached and surpassed the one trillion hub again.
What happened to change the mood so much? The reassurance from US authorities that Silicon Valley Bank’s deposits are safe.
In a joint announcement by the Fed, the Treasury and the Federal Deposit Insurance Corporation, they disclosed the creation of a new Fed lending program with funds from the Treasury. They even made it clear that the money spent will not be charged to taxpayers!
How this… miracle of wealth being generated out of thin air will be accomplished, we will find out in the coming days.
Either way, this is a… detail that is of little, if any, concern to investors. US index futures, and more, have started to climb.
Not like cryptos of course. Once again billionaire fund manager Paul Tudor Jones was confirmed that Bitcoin is the fastest horse in the race.
Details of the US authorities’ decision and the behind-the-scenes moves that preceded it will be read in detail in euro2day.gr. From our own column we would like to add two more items.
The first is that another cryptocurrency-friendly bank, Signature Bank, will come under public control.
Therefore, the problem is not limited to Silicon Valley Bank. The authorities are stepping in to put out the fire in time while it is small, so that it does not spread everywhere, preventing a possible banking chaos.
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Previous Articles:
- Play Your Way to Bitcoin Riches with THNDR’s Latest Game: Bitcoin Blocks
- Crypto.com Faces Banking Crisis as Silvergate Bank Collapses and Metropolitan Commercial Bank Exits Cryptocurrency Industry
- New York Attorney General Sues KuCoin, Argues Ethereum and Other Cryptocurrencies are Securities
- Cryptocurrency Market in Chaos: Bitcoin Plummets as US Government Cracks Down – Here Are The Reasons
- Will 2023 Be the First Year of Stablecoins?
