Bitcoin isn’t waiting for the bailout announcement as it takes off in 7% rally
Bitcoin prices are at the highs of the weekend in a big bounce to $21,500 after falling as low as $18,540 on the weekend. That’s a 7% rally that’s surpassed by a nearly 10% rally in ethereum.
The market is sniffing out an imminent backstop for US bank deposits. A number of reports, including comments from Treasury Secretary Janet Yellen herself suggest some kind of plan is coming. The latest is a Washington Post article saying the US is weighing protecting all deposits at Silicon Valley Bank.
In crypto specifically, we’ve been carefully watching the USDC drama since Friday. Circle says it’s on the hook for $3.3 billion deposits at Silicon Valley Bank and (thankfully) moved out $5.4 billion before it was shuttered. The company put out a reassuring statement that’s helped bring the stablecoin back to 96-cents from a low of 88-cents. Still, it will need to get back to par on Monday or more trouble could emerge.
Some of the flows from USDC have made their way into bitcoin as well.
In any case, the price action in bitcoin is a sign that risk assets will have a strong start on Monday.
