The crypto reversal occurred after regulators vowed to the collapse of Silicon Valley Bank.
Cryptocurrencies rebounded Monday after President Biden announced plans to limit the fallout from the collapse of two regional banks and the issuer of the USD Coin stablecoin said it remained redeemable with the dollar.
USD Coin, also known as USDC, recovered to $0.998, up from a record low of $0.87 hit on Saturday, far below its intended peg of 1:1 against the dollar. The fall was sparked by concerns on the exposure of Circle — the US firm that issues USDC — to Silicon Valley Bank, which collapsed Friday inBut Monday, Bitcoin rallied nearly 10% to $24,300.40 to recovered from lows the token hit a day earlier. The overall cryptocurrency market gained more than $105 billion in the 24 hours to 12 p.m. ET on Monday, propelling the market cap back above $1 trillion,“Markets remain unsettled from the SVB failure,” said Alvin Tan, head of FX strategy at RBC Capital Markets in Singapore. “The situation is evolving, but volatility looks set to remain elevated in coming days.”The crypto reversal occurred after US officials launched emergency measures Sunday to shore up confidence in the banking system after the failure of SVB threatened to trigger a broader financial crisis. Aside from SVB, New York’s chief financial regulator took possession of Signature Bank, a key banking firm for crypto companies. Those closures followed last week’s failure of Silvergate Capital, a significant lender to the cryptocurrency industry. Crypto companies like Coinbase and Galaxy Digital aggressively cut ties with Silvergate after the company announced the liquidation of its bank and the winding down of its operations on Wednesday.
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