After Silicon Valley Bank, a key bank for crypto companies, crashed on March 10, the already affected crypto markets began to destabilize. Major crypto coins began losing value as investors started losing trust.
A disaster for the crypto industry, the situation is now finally under control as US authorities announce an intervention to control the situation. The US government announced that it will limit the fallout that comes from the fall of SVB, whereas USD Coin stable coin issuer Circle announced that its $3.3 billion USDC reserves deposit held up at the SVB will be available after Monday.
Just two days after the SVB collapse, the US authorities decided to take up some immediate measures to bring back public trust in the banks. Understanding the dangers it posed, the authorities announced that SVB customers will be able to access their funds on Monday.
The announcements by US authorities not only brought back customer trust but also had a positive effect on the falling crypto markets. USDC, which was at a record low $0.87 on Saturday, went up to $0.998.
One of the most common cryptocurrency, Bitcoin, also increased by 6% and is currently valued at $23,350.
Circle, the issuer for the USDC announced that it is open for business and will operate under a new partnership with the Cross River Bank.
“Circle’s USDC operations will open for business, including with new automated settlement via our new partnership with Cross River Bank,” said Circle CEO Jeremy Allaire.
Apart from crypto coins, many crypto stocks also began to stabilize after the announcements from US authorities. firms such as Crypto miners Riot Blockchain, Marathon Digital and Coinbase Global went up by 11% and 6% respectively.
Despite the situation being under control, analysts are still warning investors to be careful. Alvin Tan, head of FX strategy at RBC Capital Markets said that the “markets remain unsettled from the SVB failure, the situation is evolving, but volatility looks set to remain elevated in coming days”.
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