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Crypto market rebounds after rescue of US banks

A financial rescue of several US banks by various US regulators has Bitcoin and many altcoins rising by double digits in value.

By Mike Hesp
• 2 min read
Crypto market rebounds after rescue of US banks

A financial rescue of several US banks by various US regulators is causing Bitcoin and many altcoins to rise in value by double digits.

The Federal Reserve (Fed) and the U.S. Treasury Department carried out a rescue operation at the last minute to save Silicon Valley Bank's customer deposits and coordinated the closing of the crypto bank Signature Bank (SIVB). The financial markets reacted positively to the news.

As a result, the crypto market is also benefiting noticeably and the market is recovering Sunday evening from last week's sell-off. The Bitcoin price rose in the first 12 hours of trading by 10% to $22,800. Ether (ETH) also rose by double digits to $1,630.

Some altcoins like Optimism (OP), Render Token (RNDR) and SingularityNET (AGIX) rose more than 20%. As a result of the rescue by U.S. authorities, the USDC stablecoin also regained its 1:1 peg to the U.S. dollar. A day earlier, the stablecoin faced a depeg, sending its price down to 85 cents.

According to Coinglass, roughly $200 million in short bets were liquidated on the crypto market as a result of the price spike.

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