Bitcoin rises after US regulators react to Silicon Valley Bank collapse

Bitcoin rises after US regulators react to Silicon Valley Bank collapse


Bitcoin and other cryptocurrencies rose on Monday after US authorities announced plans to limit the effects of the crash Silicon Valley Bank and cryptocurrency company Circle have assured investors that its peg to Bitcoin is safe.

Reuters writes about it.

The U.S. Treasury Department and the Federal Reserve announced a series of measures to stabilize the banking system and said SVB depositors would have access to their deposits.

The price of the stablecoin USD Coin (USDC) recovered to $0.9917, which is closer to its face value and above last week’s low of around $0.88.

The USDC lost its 1:1 peg to the dollar over the weekend and hit a record low on Saturday amid concerns that Circle – the firm behind the USDC – could be linked to Silicon Valley Bank.

Circle CEO Jeremy Aller said that the USDC reserve deposit of $3.3 billion held in the bankrupt Silicon Valley Bank, will be fully available when US banks open on Monday.

“Circle’s operations with USDC will be open for business, including with new automated payments through our new partnership with Cross River Bank,” Aller said.

Bitcoin is up about 8% from Sunday’s lows, trading at $22,568.

We will remind:

The US Federal Reserve will provide additional funding to help the banking system function after the collapse of Silicon Valley Bank and Signature Bank.

Read more: The world is panicking over the collapse of Silicon Valley Bank and fears a new financial crisis. Is everything so serious?

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