Major coins traded in the green on Sunday night after news that all Silicon Valley Bank and Signature bank deposits will be refunded in full to customers.
| Cryptocurrency | Gains (+/-) | Price |
|---|---|---|
| Bitcoin | 9.35% | $22,563 |
| Ethereum | 9.60% | $1620 |
| Dogecoin | 7.79% | $0.071 |
What happened: Apex cryptocurrency Bitcoin (CRYPTO: BTC), which has been trading below $21,000 since Thursday, rallied 9.35% to over $22,000 in the last 24 hours. Ethereum (CRYPTO: ETH) was up approx. 9.60% to change hands over $1600. Dogecoin (CRYPTO: DOGE) was trading at $0.071, up 7.79% in the last 24 hours.
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At the time of writing, the global crypto market cap was $1.03 trillion, up 7.94% in the last day.
US stocks suffered heavy losses on Friday after the sudden closure of technology-focused lender Silicon Valley Bank. The bank’s bond portfolio had incurred significant losses, resulting in the biggest bank failure since the 2008 global financial crisis that sent shockwaves through the banking sector. The S&P 500 closed 1.45% lower and the Nasdaq Composite fell 1.76%, illustrating the broad-based selling across the market.
See more: Best Crypto Day Trading Strategies
News Highlights: The Finance Ministry is quickly calling a series of emergency meetings to decide whether all depositors in the recently collapsed SVB bank should be protected from financial losses, according to a Washington Post report. In close consultation with the president Joe Bidenthe US government reached an agreement to resolve problems faced by a number of banking institutions, to ensure that taxpayer funds are not affected in any way.
“The U.S. banking system remains resilient and on solid footing,” the joint statement said, citing banking regulations established after the 2008 global financial crisis that “ensured better protections for the banking industry.”
Ripple (CRYPTO: XRP) also had exposure to SVB, but Adm. Dir Brad Garlinghouse made it clear that no disruption to day-to-day operations was expected. In fact, Ripple has already held a majority of USD in reserve with a wide network of banking partners. To further reassure Ripple users, Brad tweeted: “Rest assured, Ripple remains in a strong financial position”.
Analyst Notes: Michael van de Poppefounder and CEO of Eight trade, said Bitcoin is making a good move, but it still faces a key level of $21,300. If it breaks through this and wins, it could be time for new highs of $25,000 and a good opportunity for longs. If it falls below $20,600, there may be a chance to go long and $21,300 is the current area for shorts, with the theory that it could go to $18,100 if $20,600 is lost.
Good move #Bitcoin here, but still face a case where I would see this range around $21.3K.
If it breaks and win -> time for highs at $25K and look for longs.
$20.6K could be bounce play longs, $21.3K for now shorts.
Lose $20.6k -> theory of $18.1k. pic.twitter.com/cl9rxRB4v5
— Michaël van de Poppe (@CryptoMichNL) March 12, 2023
Van de Poppe added: “People[are] flying out of stablecoins, straight towards Bitcoin.”
USD USD de-pegging, as it trades at $1.0160.$USDC still trading at $0.945.
Other stablecoins are also de-pegging.#Bitcoin and #Ethereum pumping.People flying out of stablecoins, head on #Bitcoin.
— Michaël van de Poppe (@CryptoMichNL) March 12, 2023
This weekend has been “wild” when it comes to price action and news events, according to pseudonymous analyst Pentoshi. Not only have we seen unprecedented levels of volatility, but rumors and fear mongering, otherwise known as FUD, have been rampant. In this climate of uncertainty, Pentoshi warned that it had been a long time since volatility was this high.
this weekend price action/news events and R&D have been wild, don’t remember volatility being this high in a LONG time
— Bluntz (@Bluntz_Capital) March 12, 2023
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