Bitcoin rallies over 18% in 24-hour span in wake of SVB crisis

The value of major cryptocurrencies rose Monday in the wake of U.S. government plans to protect Silicon Valley Bank and Signature Bank depositors.

The Federal Reserve issued a pair of statements on Sunday with one clear message: Silicon Valley Bank’s depositors, both insured and uninsured, will receive help in a manner that will “fully protect” their deposits.

The risk of a banking contagion was lower at the start of the week than last Friday, but not zero.

Following a rally in the price of bitcoin and other crypto assets, the overall crypto market surpassed $1 trillion in value on Monday, up about 14% day over day.

In the past 24 hours, bitcoin rose 18.4% to over $24,000, while ether rose 15% to about $1,700, CoinMarketCap data showed. The two cryptocurrencies, which are the largest by market capitalization, are trading in parallel with one another.

Image Credits: CoinMarketCap (opens in a new window)

USDC, the second largest stablecoin, also recovered about 4% in the past 24 hours following the news that deposits would be protected, CoinMarketCap data showed.