Bitcoin Jumps Over 9% As US Acts To Protect Deposits In Crypto-Linked Banks

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Bitcoin and Ether Led Strong Price Rally Among Top 10 Non-Stablecoin Cryptocurrencies in Morning Trading in Asia US banking regulators take control of Silicon Valley Bank and Signature Bank, with ties to both the crypto industry, and guaranteed deposits at institutions as well as additional backstops for the banking industry. tricks After Silvergate Capital’s failure last week That raised the risk of a systemic run on the banks. Solana took the lead.

See related articles: To close Crypto Bank Silvergate, return all deposits; Crypto becomes the latest victim of 2022 turmoil

Some facts

  • Bitcoin is up 9.60% in the past 24-hours to $22,601 in Hong Kong at 09:00 AM. coinmarketcap data, Ether gained 9.77% to $1,621.

  • Solana gained 12.85% to $20.38 but still has more ground to make up as is down 2.93% in the last seven days.

  • USD Coin (USDC), the second largest stablecoin by market capitalisation, traded in line with its dollar peg in Asia on Monday morning following the failure of the Silicon Valley bank where has deposits of around $3 billion . circle wiseIssuer of USDC.

  • USDC fell to $0.8774 on Saturday and its market capitalization dropped 15% from US$43 billion to US$36 billion. circle Said The same day the company had the funds to back the USDC and would remain redeemable 1 for 1 with dollars. USDC recently traded at US$0.9941.

  • Circle CEO Jeremy Allaire Said All circle deposits will be available on Monday when banks open on Monday.

  • The total crypto market capitalization increased by 6.47% to USD 1.01 trillion in the last 24 hours. The total trading volume decreased by 34.52% to $60.19 billion in the last 24 hours.

  • stocks slid on Friday. The Dow Jones Industrial Average was down 1.07%, the S&P 500 was down 1.45% and the Nasdaq Composite Index was down 1.76%.

  • Equity plunged after the collapse of Silicon Valley Bank, which was taken over by the FDIC on FridayIn the biggest US bank failure since 2008. However, US stock futures were trading higher in Asia on Monday morning, reflecting moves to backstop the US banking industry.

  • Amid banking scare, investors grapple with Job reports from the Department of Labor Shows on Friday showed February non-farm payrolls came in at 311,000, well above estimates of 225,000. This leads to the statement that the Federal Reserve may raise interest rates more than previously expected to curb inflation.

  • However, with banking failures now the center of attention and concern of analysts cme group predict a 17.4% chance of a 50 basis point increase this month, a sharp decline from last Friday’s 60.9%. This reflects a view that the Fed is unlikely to hike rates by so much amid a series of bank failures.

  • The CME expects an 82.6% chance the Fed will raise rates by the predicted 25 basis points this month, but other commentators say the Fed could postpone any hike until next month as jitters in the banking industry mount.

  • The Fed meets on March 22 to make its next decision on interest rates, which currently range from 4.5% to 4.75%, the highest since October 2007.

  • According to the Department of Labor, the US annual inflation rate for the year ending January 2023 is 6.4% statistics Issued on February 14, much higher than the Fed’s longer term Target To keep inflation in the 2% band. The next inflation update is scheduled for March 14 at 8:30 AM Eastern Standard Time.

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See related articles: Weekly Market Wrap: Bitcoin Plunges Below US$20,000 as Silvergate Collapse Raises Rate Hike Worries