Crypto Assets Surge After U.S. Bank Crisis Intervention

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Monday saw a surge in the value of major cryptocurrencies in response to the U.S. government’s intervention to protect depositors at Silicon Valley Bank and Signature Bank. Bitcoin’s price rose to above $24,000, a jump of 18% in the last day, while crypto stocks such as Microstrategy and Coinbase experienced considerable gains.

Even prior to the opening of the stock market, crypto-related stocks were showing some positive signs alongside the rise of Bitcoin (BTC). This follows the government’s action to prevent a possible banking crisis in the U.S. The collapse of Silvergate Bank and Silicon Valley Bank, both with close ties to the digital currency sector, caused a steep decrease in Bitcoin’s value below the $20,000 level last week.

Read More: Binance CEO Believes Crypto Market Is Being Targeted By Coordinated Efforts

When the market opened on Monday, the Dow Jones gained 186 points, the S&P500 went up by 0.7%, and the Nasdaq Composite increased by 1.3%. Crypto assets and the global crypto market cap followed suit, reaching around $1.08 trillion, a rise of 13.47%. Crypto stocks also enjoyed the upward trend, with Microstrategy’s shares rising 13%, and mining-focused companies such as Marathon Digital and Riot Platforms increasing by 16% and 14%, respectively. Coinbase’s stocks also advanced by 10%.

Will Momentum Continue?

Some investors have celebrated this as a triumph of Bitcoin over traditional financial services, which is the main idea behind the crypto asset’s creation in 2008. However, other market analysts have questioned the sustainability of this bullish trend. It is expected that the U.S. authorities will implement stricter rules for banks dealing with digital currency businesses, and this could have a negative effect on crypto prices and stocks.

Also Read: U.S. President Biden States Investors Of Impacted Banks Will Not Be Compensated

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