The collapse of the Silicon Valley Bank (SVB), considered to be the 16th largest bank in the US has set Bitcoin price on rally. The dominant cryptocurrency has surged nearly 20% in the 24 hours since. Bitcoin was trading at $ 20,201 on March 10, as per Investing.com data, on the day the SVB collapse made the headlines. It is currently trading at $ 24,250 as on 1:40 pm, March 14.
The US Federal Reserve’s statement to “fully protect” Silicon Valley depositors, the Fed stepping in to bail out Signature Bank appears to have fuelled the rally. The latest rally in the cryptocurrency market has helped the overall market capitalization of cryptocurrencies to cross the $1 trillion mark. The whole cryptocurrency market was on rally with the crypto market gaining 14% day over day on March 13 as reported by Tech Crunch.
The surge in cryptocurrency has brought a relief to its investors as the news of Silvergate Bank collapse on March 8 had dealt a critical blow to cryptocurrency markets, with Bitcoin briefly breaching the $ 20,000 mark. The fall of banks and the proportionate rally of cryptocurrency has advocates of alternate currency thrilled. Signature Bank, a New York based bank, known for its lending in the cryptocurrency market did not falter the cryptocurrency rally. While crypto currency has had volatile week, it remains to see if they rally will sustain.
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