Lately, the crypto market has been bombarded with various catalysts that have an impact on the price of the crypto market. Among the latest that has caught the attention of the market is about what action the Federal Reserve will take, then about the issue of guaranteeing depositors at Silicon Valley Bank.
Bitcoin prices fell a few days ago due to concerns that Silicon Valley Bank would not be able to meet customer redemption requests.
The bank was closed on Friday, and the market faced a collapse. However, it did not take long for the US Government to take preventive measures. In a joint statement by the Federal Reserve, the Treasury Department and the Federal Deposit Insurance Corporation, officials pledged to make to meet the demands of depositors.
This measure will ensure that the U.S. banking system continues to play its important role of protecting deposits and providing access to credit to families and businesses in a way that promotes strong and sustainable economic growth.
The market seems to have shown optimism today as the price of Bitcoin and other altcoins have started to show consolidation. At the time of writing, BTC is trading above $22,000, having risen nearly 10% during the market collapse. Most altcoins are also strengthening.
It should be noted that also contributing to the strengthening is that there are reports that Binance will exchange the remaining $1 billion from their Industry Recovery Initiative in BTC, BNB and ETH.
Commenting on the matter, CZ said:
Given the changes in stablecoins and banks, Binance will convert the remaining $1 billion Industry Recovery Initiative fund from BUSD to BTC, BNB and ETH.
Market players continue to monitor the development of SVB effects and important economic data.
