Bitcoin and Ether Price Jumps Over 9% as Fed and FDIC Come at SVB Depositors Rescue
The Fed and the FDIC have assured depositors that they could withdraw money from Silicon Valley Bank thereby instilling some confidence among crypto investors. In the early trading hours on Monday, March 13, the broader cryptocurrency market made a strong comeback surging past $1 trillion levels once again. This surprise rally in the crypto space came as the top three US regulators – the Federal Reserve (Fed), US Treasury, and FDIC – stepped in to control the unfolding crisis in the US banking sector. Earlier last week, the Silvergate Bank announced a shutdown following major liquidity issues. Fed and FDIC Want to Rescue SVB Depositors Later on Friday, March 10, the Silicon Valley Bank announced a shutdown in one of the biggest banking failures after the 2008 financial crisis. The SVB has its money in the US Treasuries which lost their value as the Federal Reserve raised interest rates. In order to shore up their capital position, these banks have been forced to sell these Treasury bonds at a loss. Later on Sunday, March 12, the US regulators announced the closure of Signature Bank to prevent any spread of contagion into the broader banking sector. This move from the regulators to create a backstop