Tuesday, March 14, 2023, 08:22
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Cryptocurrencies PHOTO / pixabay
Cryptocurrencies rallied on Monday, with bitcoin advancing as much as 10%, following measures taken by regulators in YOUR to support the depositors of the Silicon Valley Bank (SVB), closed on Friday, while HSBC agreed on Monday to buy its British subsidiary, reports CNBC.
Bitcoin rose as much as 10% during trading, later trading up 5% at $22,374.68 per unit, according to data from Coin Metrics.
Ether rose 2% to $1,585.58 per unit.
The global cryptocurrency market gained more than $70 billion in a 24-hour period, returning to more than $1 trillion on Monday.
Cryptocurrency markets have seen high volatility since last week’s collapse of Silvergate Capital, a major bank in the crypto industry.
Silvergate said Wednesday it would cease operations and liquidate its bank. Then came the collapse of Silicon Valley Bank on Friday, the biggest bank failure since the 2008 financial crisis.
Both Silvergate and SVB placed their money in US Treasuries, which lost value as the US Federal Reserve raised interest rates.
These banks were forced to sell these bonds at a loss to consolidate their capital position.
On Sunday, regulators also closed Signature Bank, hit by massive cash withdrawals by depositors panicked by the collapse of SVB, to stop any contagion in the wider banking sector.
