Cryptocurrencies surged on Monday amid a broader rally in risk assets, even after regulators Sunday announced the closure of Signature Bank, the last major crypto bank in the U.S. Bitcoin
rose more than 15% to $24,407.85, according to Coin Metrics, and is now about 18% above its Friday levels. Since the January rally in risk assets began to fizzle out, chart analysts have been looking for a meaningful break above $25,000. Ether rose 8.5% to $1,673.29. The jump in risk assets came after U.S. regulators announced plans Sunday night to backstop all the depositors in failed Silicon Valley Bank and make additional funding available for other banks. Investors were also betting Monday that the Fed will be less aggressive in raising interest rates now that authorities have stepped in to limit the fallout from SVB and Signature. “A slower hiking pace and a lower terminal rate, plus the likely injection of liquidity to prop up banks struggling to meet withdrawals (through the Bank Term Funding Program) imply greater market liquidity, even if this could be partially offset by higher volatility,” said Noelle Acheson, economist and writer of the “Crypto is Macro Now” newsletter. “Bitcoin is one of the most sensitive assets to market liquidity, since its ‘risk’ profile is unencumbered by earnings or ratings concerns,” she said.
Full story : Cryptocurrencies rally despite shutdown of crypto friendly Signature Bank, bitcoin breaks through $24,000.
