This Week in Coins: Bitcoin, Ethereum Post Mega Rally After Banking Intervention

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This week in coins. Illustration by Michele Prefer for Decrypt.

Afterwards loss for three consecutive weeksPrices turned in the green for holders of the two largest cryptocurrencies by market cap this week.

According to CoinMarketCap data, Bitcoin (BTC) has gained 36% in the last seven days and is now trading at around $27,515.

Last week, bitcoin dropped nearly 10% in reaction to news that both industry-services Signature Bank and Silicon Bank (SVB) had failed.

The Industry’s No. 2 Coin, Ethereum (ETH), Is Back Where It Was before the recession, ETH is up 27% in seven days and currently changes hands at $1,832.

The whole crypto market came to life again since last Sunday night Federal Reserve, US Treasury and FDIC announced that they would step in backstop all deposits Signature and on SVB. He was promised reiterated by President Biden.

However, crypto hasn’t turned out to be completely safe: the industry has two of its most crypto-friendly banks, and now conflicting reports are circulating on whether or not the FDIC is. informing potential buyers Signature Bank that he would have to leave the crypto business of the bank. Former Massachusetts Congressman Barney Frank claimed that the Fed withheld signatures to send “a”.anti-crypto message“and a reuters Reports appeared at the end of the episode to corroborate Frank’s claims; The FDIC has since refuted the claims made in reuters Story.

In the UK, Chancellor of the Exchequer Jeremy Hunt announced that HM Treasury—the UK Ministry of Finance—had mediated the bailout deal in which HSBC acquired the British arm of SVB. for £1 To bring the entire UK business into contact with the Bank.

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In addition to these interventions, investors flocked to riskier assets such as crypto and tech stocks this week after signs emerged that the banking crisis could spread to Europe’s tradefi institutions: credit Suisse announced on Wednesday $54 billion debt To increase your liquidity from the Swiss National Bank.

Virtually all of the top thirty cryptocurrencies by market cap recorded significant gains this week, but barring bitcoin and ethereum, some of the biggest winners were Filecoin (FIL), which rose 33% to $6.39, Polygon (MATIC), which gained 22%, % increased to 22%. $1.24, Solana (SOL), which rose 28% to $22.30, and BNB, which climbed 25% to $344.76.

USDC—the -pegged stablecoin issued by Circle—slipped its peg late last week and fell to 87 cents following uncertainty over the company’s investments in troubled banks. This Stable This week in response For bailout news.