Bitcoin Rises Above $22k Despite Signature Bank’s Shut Down

Twitter icon  •  Published vor 1 Jahr  •  Hassan Maishera

Bitcoin stands the new week in a positive fashion, rising by nearly 10% in the last 24 hours to trade above $22k once again.

TLDR;

  • Bitcoin is up by nearly 10% in the last 24 hours and is now trading above $22,300 per coin.
  • The rally comes despite the Federal Reserve shutting down the crypto-friendly Signature Bank.

Bitcoin Rises Above $22k Once Again

Bitcoin, the world’s largest cryptocurrency by market cap, has surged by more than 10% over the last 24 hours. The rally saw Bitcoin reserve last week’s losses which saw it drop below the $20k level for the first time since January.

The positive performance comes despite the Federal Reserve shutting down Signature Bank on Sunday. The New York-based bank has a number of crypto clients and is popular within the ecosystem.

The Federal Reserve announced that the Federal Depository Insurance Corporation (FDIC) had taken receivership of the bank. New York Department of Financial Services Superintendent Adrianne Harris said;

"Signature Bank is a New York state-chartered commercial bank and is FDIC-insured, with total assets of approximately $110.36 billion and total deposits of approximately $88.59 billion as of December 31, 2022. DFS is in close contact with all regulated entities in light of market events, monitoring market trends and collaborating closely with other state and federal regulators to protect consumers, ensure the health of the entities we regulate, and preserve the stability of the global financial system."

Signature Bank is the third bank to collapse within the space of a week after the earlier shutdown of Silvergate Bank and the Silicon Valley Bank.

Despite the FUD in the market, Bitcoin has been soaring. With Bitcoin rising above the $22k level once again, the total cryptocurrency market cap also rallied past the $1 trillion psychological level. 

The market responded to reports that the United States government is considering safeguarding uninsured deposits at Silicon Valley Bank should a buyer not be found for the collapsed bank. 

The government could come in if the ongoing auction to find a buyer for the bank fails to yield any positive result. It would be interesting to watch Bitcoin’s price action as the events unfold.

Author

Hassan Maishera

Hassan is a Nigeria-based financial content creator that has invested in many different blockchain projects, including Bitcoin, Ether, Stellar Lumens, Cardano, VeChain and Solana. He currently works as a financial markets and cryptocurrency writer and has contributed to a large number of the leading FX, stock and cryptocurrency blogs in the world.