Bitcoin Rises Above $26K on Fed’s $300B Deposit in US Banks (Market Watch)
Bitcoin soared by roughly $2,000 in a day when the US Federal Reserve announced a $300 billion loan to certain struggling US banks, including Silicon Valley Bank and Signature Bank.
Altcoins have also turned green today, with ETH retrieving $1700, while BNB, MATIC, DOGE and DOT are up over 5%.
BTC rises above $26K
A lot can change in cryptocurrency within a week, and the past seven days are a prime example. Bitcoin struggled to stay above $20,000 last Friday amid mounting banking troubles with several organizations linked to the industry.
After a relatively calm weekend where BTC stood around $20,500, the asset broke in the following days.
It first rose above $22,000 before another couple of leg-ups took it to $26,500 on Tuesday. This was the highest price tag since June 2022. The bears finally came up to play and pushed the cryptocurrency south. As a result, bitcoin fell to $2,000 on Wednesday.
However, the U.S. central bank said it lent $300 billion to support some struggling U.S. banks. Over 140 billion dollars went to Signature Bank and SVB.
This had a profound impact on BTC’s price performance as the asset exploded by another few thousand and retook $26,000. It is still trading there now, pushing its market cap to over $500 billion. Its dominance over the alts also continues to increase and has dropped 45%.
Everything in the green
Numerous altcoins suffered yesterday, but the landscape is completely different today. Ethereum has returned above $1,700 after a 4% daily gain. Binance Coin is well above $330 after gaining over 5% in the last 24 hours.
MATIC, Dogecoin, Polkadot and Avalanche have similar increases. Cardano, Solana, Shiba Inu, Ripple and Litecoin are also in the green, albeit with more modest gains.
STX has risen most from the mid-cap alts (19%). As a result, the asset has jumped above $1.
Overall, the crypto market capitalization has added $50 billion in one day. This has helped the metric regain the coveted $1.1 trillion line.
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