CJ - Cryptocurrency Expert
The cryptocurrency market has surpassed the $1 trillion milestone once again, as a joint statement from the Federal Reserve, U.S. Treasury, and FDIC brought relief to depositors of Silicon Valley Bank and Signature Bank.
Following the announcement, Bitcoin price rose to $22,300 and Ethereum (ETH) reached $1,596, both up approximately 8% in the last 24 hours, according to CoinMarketCap data. Top-30 coins such as Cardano (ADA), Polygon (MATIC), Solana (SOL), Litecoin (LTC), Avalanche (AVAX), and Filecoin (FIL) also surged by over 10%. However, the traditional financial market reacted hesitantly, with the U.S. dollar falling during early Monday trading.
US Dollar Coin (USDC), the second-largest stablecoin, returned to its dollar peg of 99.3 cents on various price indices after falling to a new all-time-low of 87 cents on Friday. USDC issuer Circle's disclosure of $3.3 billion of cash reserves sitting in Silicon Valley Bank prompted concerns about the stability of stablecoins. The weekend slump in stablecoins like USDD, USDP, and USDC, and the banking chaos and contagion, have raised doubts about the viability of stablecoins in the future.
While the recent banking failures and financial market uncertainties have caused concern among investors, they have also highlighted the appeal of Bitcoin (BTC) as a safe haven asset. As a result, some analysts predict that Bitcoin could rise even higher as people seek alternative stores of value. If you're looking to purchase Bitcoin and believe in its long-term viability, consider using a reputable cryptocurrency broker such as BC Bitcoin, which can offer guidance and support in navigating the volatile cryptocurrency investment market.