Major Cryptocurrencies Stabilize After US Intervention in SVB

The main cryptocurrencies They stabilized this Monday, March 13, after the US authorities announced plans to limit the consequences of the bankruptcy of Silicon Valley Bank (SVB) and that the issuer of ‘stable currency’ USD Coin said that it was still exchangeable with the dollar.

US authorities on Sunday launched emergency measures to shore up confidence in the banking system after the bankruptcy of the SVB threatened to unleash a financial crisis and said that the bank’s clients would have access to their deposits starting Monday.

USD Coin, also known as USDC, was recovering to $0.9917 from the all-time low of $0.87 hit on Saturday, well below its expected 1:1 parity against the dollar. The drop was due to concerns about the SVB exposure of Circle, the US firm that issues USDC.

For its part, bitcoin fell 0.3% to US$22,125, but continued to accumulate an increase of close to 8% from Sunday’s lows.

Jeremy Allaire, Circle’s chief executive, said in a tweet on Sunday that the company’s $3.3bn USDC reserve deposit — about 8% of its total — held at the collapsed SVB Bank, would be fully available when the American banks open this Monday.

Stablecoins like USDC, the second largest by market size, are a crucial cog in the world of cryptocurrency trading. They are designed to maintain a stable value and are usually backed by reserves of traditional assets such as dollars, bonds, or gold.

Stocks exposed to cryptocurrency also rose. In pre-open trading for the US markets, cryptocurrency miners Riot Blockchain and Marathon Digital, cryptocurrency exchange Coinbase Global (NASDAQ:COIN) and software developer MicroStrategy Inc were also recovering from last week’s lows. to earn between 6.5% and 10%.

With information from Reuters.