SVB Blow Cushioned by Team Biden as Bitcoin, Ethereum, and Dogecoin Rally
Major cryptocurrencies experienced a boost in value on Sunday as it was announced that all Silicon Valley Bank and Signature Bank deposits would be fully refunded to customers. The global crypto market capitalization rose to $1.03tn, an increase of 7.94%. Bitcoin rose 9.35% to over $22,000 and Ethereum was up 9.60%, reaching $1,600. Dogecoin also traded at $0.071, up 7.79% in the past 24 hours. Silicon Valley Bank’s sudden shutdown on Friday had a negative impact on US equities, with the S&P 500 and Nasdaq Composite recording notable losses. The bank’s bond portfolio had incurred significant losses, resulting in the biggest bank failure since the 2008 global financial crisis. The Treasury Department is now urgently convening emergency meetings to determine whether to protect all depositors of the recently-collapsed SVB bank from financial losses. Ripple also had exposure to SVB, but CEO Brad Garlinghouse suggested there would be no disruption to everyday business, stating that Ripple remained in a strong financial position. Analysts note that Bitcoin could break through a key level at $21,300 and gain, enabling the cryptocurrency to see new highs at $25,000 and an opportunity for longs. Meanwhile, pseudonymous analyst Pentoshi warned about the high levels of volatility and rumors in a climate of uncertainty.
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