Cryptocurrencies rebounded sharply after U.S. regulators stepped in on Sunday to soothe the turmoil in the banking sector caused by the collapse of Silicon Valley Bank and the closure of the Signature Bank. Market capitalization also regained the psychological $1 trillion level.
The Department of the Treasury, Federal Reserve, and Federal Deposit Insurance Corporation had on Sunday issued a joint statement indicating actions taken to strengthen public confidence in the U.S. banking system. It inter alia assured that depositors of these institutions would be made whole and that no losses would be borne by taxpayers.
Silvergate Bank which collapsed a week earlier and Signature Bank which was closed down by the New York State Department of Financial Services on Sunday had close ties with the cryptocurrency sector.
The Dollar’s retreat, amidst expectations that the Fed would be forced to tone down its aggressive rate hikes and rhetoric supported the rally in digital assets. The Dollar Index (DXY) which measures the Dollar against a basket of 6 currencies is currently at 103.62 versus the three-month high of 105.88 touched on Wednesday.
Overall crypto market capitalization has increased more than 11 percent overnight to $1.05 trillion, from $948 billion a day earlier.
Bitcoin (BTC) rebounded 16.7 percent overnight to trade at $24,029.88. It had touched a low of $20,536.36 in the past 24 hours and a seven-day low of $19,628.25 on Friday.
Ethereum (ETH) too rallied 13 percent overnight and is currently changing hands at $1,669.67. Ether had touched a low of $1,468.92 in the past 24 hours and a seven-day low of $1,378.53 on Friday.
5th ranked USDCoin (USDC) almost regained its Dollar peg and traded between $0.9999 and $0.958 in the past 24 hours. The second most valued stablecoin had lost its peg to the Dollar to touch a low of $0.8774 on March 11, after the USDC issuer Circle disclosed that it had $3.3 billion of the cash reserves backing USDC in Silicon Valley Bank.
77th ranked Conflux (CFX) was the best performer on an overnight basis with a surge of more than 64 percent. 58th ranked Synthetix (SNX) followed with a 50-percent rally. 44th ranked Stacks (STX) and 53rd ranked Maker (MKR) have both gained more than 40 percent in the past 24 hours.
22nd ranked UNUS SED LEO (LEO) dropped more than 8 percent overnight.
Despite the massive rebound, 70th ranked Huobi Token (HT), 68th ranked Bitcoin SV (BSV), 61st ranked Terra Classic (LUNC), 81st ranked Trust Wallet Token (TWT), 79th ranked Zcash (ZEC) and 22nd ranked UNUS SED LEO (LEO) continue to trade with losses in the year 2023.
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