Bitcoin back to $24K as markets recover
Bitcoin (BTC) appears to be recovering from a sharp drop in value caused by investor hysteria following problems at Silicon Valley Bank and Silvergate. A recent announcement by US officials that they would help clients recover stolen money may have favored the price of Bitcoin.
According to the latest figures, the value has increased by over 7% in the last day and a half. The price of one Bitcoin was $24,070 at the time of writing. BTC’s trading volume had also seen a whopping 77% increase in the same period taking it to $37,954,477,018.
How could watchdogs have affected the price?
Treasury Secretary Janet L. Yellen, Chairman Jerome H. Powell, and Chairman of the Federal Deposit Insurance Corporation Martin J. Gruenberg gave an official statement on the topic of Silicon Valley Bank and Silvergate to protect the economy of the United States states by strengthening public confidence in the banking system. This new development by the regulators has restored investor confidence in crypto.
Yellen believes that the relevant regulatory bodies must take appropriate measures for the banking sector to continue to secure deposits and provide access to credit for individuals and businesses in a way that promotes strong and sustainable economic growth.
After consulting with the President and taking advice from the Boards of Directors of the FDIC and the Federal Reserve, Secretary Yellen gave the green light to actions that will enable the FDIC to complete its resolution of Silicon Valley Bank in Santa Clara, California, in a manner that guarantees full security for all depositors. From 13 March all depositors will have access to their funds. The settlement with Silicon Valley Bank will not result in a loss of cash for the state.
Additionally, it was announced today that Signature Bank, also based in New York, will be closed after the state charter board granted a similar systemic risk exemption. All depositors will receive full compensation, and the government will have no liability, much like the Silicon Valley Bank settlement.
Circle introduces automated minting for USDC amid latest move by watchdogs
With the help of new financial partners, Circle, a prominent producer of digital dollar stablecoins, has announced the automatic minting and redemption of USDC for its users. Circle is taking this step to protect the foundations of its Internet-based money and payment systems from the dangers associated with fractional reserve banking. Despite banking contagion affecting the crypto markets, Circle CEO Jeremy Allaire has stressed that the business will continue to ensure the reliability, safety and 1:1 redeemability of every USDC in circulation.
Most of the USDC reserve ($32.4B) is held at BNY Mellon as cash, while short-term US T-bills provide security for the remaining cash. BNY Mellon is responsible for holding the reserves, while BlackRock oversees the assets’ liquidity and administration. Circle publishes monthly USDC attestation reports on its website to be transparent with investors.
