Bitcoin, the world’s most popular cryptocurrency, hit a nine-month high of $26,533 on Tuesday, marking its fourth consecutive day of gains. The digital currency appeared to be benefiting from the chaos in global markets that followed the collapse of Silicon Valley Bank last week. Despite being linked to the crisis, the cryptocurrency market is showing signs of resilience, even as the Federal Reserve seeks to calm financial markets.
Bitcoin’s Recent Surge
Bitcoin’s rise to $26,533 on Tuesday was up by about 10% on the day, marking its highest point since June 2022. On Sunday, the cryptocurrency gained 7.6%, and on Monday, it rose by 9.1%. Bitcoin’s recent surge can be attributed to the ongoing chaos in global markets following the collapse of Silicon Valley Bank, which has resulted in the loss of billions of dollars.
Crypto’s Resilience
Despite the huge fallout from the collapse of Silicon Valley Bank, USDC, a stablecoin pegged to the US dollar, has recovered. Moreover, the crypto king, Bitcoin, has soared to a nine-month high, indicating the cryptocurrency market’s resilience. Clara Medalie, a digital asset data and information services provider at Kaiko, said, “The long-term concern is on the future of fiat banking partners for crypto companies. Silvergate and Signature were hugely important for crypto companies in the industry, and right now, there remain no strong alternatives.”
Role of Fiat Banking Partners
The collapse of Silicon Valley Bank has raised concerns about the future of fiat banking partners for crypto companies. Silvergate and Signature were crucial for crypto companies in the industry, but right now, there are no strong alternatives. The loss of banking partners could result in a lack of liquidity for crypto companies and hinder their growth. However, the crypto market’s resilience amid the crisis.
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