Massive Gains in Bitcoin and Other Cryptocurrencies Recorded Amidst Financial Crisis in Banking Industry
The cryptocurrency market has rallied despite the closure of two crypto-friendly banks, Silvergate and Signature, last week. Bitcoin, ethereum and the broader crypto index are up by as much as 8% today. This pushed bitcoin up 8.84% to a price of $22,472 and boosted the total cryptocurrency market cap past the $1tn market cap. Market analysts suggest recent regulatory action against crypto-friendly banks has added market confidence which has helped the market bounce back following last week’s worst sell-off since November 2022. As well as bitcoin, alternative cryptocurrencies like ethereum, Binance Coin, Cardano, Polygon and Dogecoin have gained between 7-10%. While the collapse of Silvergate has had little impact, the withdrawal of depositors from Signature has hit stablecoin market leader Circle, whose peg to the dollar was affected over the weekend. Circle is taking steps to resolve the issue.