Bitcoin on Canada Cryptocurrency – On Monday, cryptocurrency prices jumped as regulatory efforts to save one of the largest licensed banks offering services to the industry eliminated a significant immediate danger.
The Federal Reserve, the U.S. Treasury, and the Federal Deposit Insurance Corporation announced on Sunday that they would backstop the deposits of Silicon Valley Bank (NASDAQ: SIVB) and Signature Bank (NASDAQ: SBNY), two organizations that are crucial providers of banking services to some of the biggest players in the cryptocurrency market.
The declaration eliminated the possibility that the government’s attempts to save the banks would result in the loss of billions of dollars held by companies like Coinbase (NASDAQ:COIN) and USD Coin issuer Circle.
With the crypto community still grieving from the collapse of FTX late last year, Bitcoin on Canada Cryptocurrency is ill-equipped to withstand any further shocks of similar nature. Claims of fraud at FTX have raised questions about the cryptocurrency industry, especially in relation to how it interacts with the regulated banking industry and the possibility that poor governance in the industry might spread to Main Street financial institutions.
The Circle-issued stablecoin Dollar Coin was among the top gainers on Monday. Circle has deposited $3.3 billion of its reserves to Silicon Valley Bank, significantly in excess of the amount that is government guaranteed. On Saturday, USD Coin dropped as low as 88c due to the possibility that it will be forced to “haircut” its deposits as part of SVB’s resolution.
Nevertheless, by 04:45 ET, the coin—which is intended to trade at exactly $1—had rebounded to 98.61 cents (09:45 GMT). The stablecoin DAI, which keeps the majority of its holdings in Dollar Coin, was another major winner. Upward, to 98.41.
The effects of federal action on the security of reserve assets and the weekend’s events on the outlook for interest rates both benefitted more widely used digital assets.

In order to avoid further harming the financial system, a number of institutions, notably Goldman Sachs, now anticipate that the Fed will proceed more cautiously with any future efforts to tighten monetary policy.
On Monday morning in Europe, short-term U.S. interest rate futures spiked as investors reduced their bets on a rate rise. The Fed meeting next week is expected to result in no adjustment to the Fed Funds rate, according to the market as of 04:45 ET. Before this, the consensus called for a 25 basis point increase, with a sizable minority anticipating a half-point increase in response to a spate of economic data indicators that have been stronger than anticipated since the year’s beginning.
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