- The crypto market had a hard time over the weekend due to problems with USDC
- But now the stablecoin is recovering
- And the United States promised support to depositors
The crypto market started the week with a strong rise in prices. Bitcoin jumped 8.60% in a day and is now trading at $22,430. Ether added 9.77% and is worth $1,601 at the time of writing.
The USD Coin (USDC), a stablecoin that caused a lot of panic over the weekend, is also doing better. He almost completely restored the peg to the dollar ($0.9926).
The total capitalization of the crypto market has increased by 6.47% over the past 24 hours. Now it is equal to $1.01 trillion. Total trading volume over the past 24 hours is down 34.52% to $60.19 billion.
As a reminder, USDC fell to $0.8774 on Saturday as Circle keeps most of its reserves in the bankrupt Silicon Valley Bank. By the way, the bankruptcy of SVB was the loudest banking collapse since the 2008 crisis.
But the US intervened and reduced the market panic. They take control of troubled banks and promise users the return of all deposits.
Circle CEO Jeremy Aller has already said all Circle deposits will become available on Monday when banks reopen.
Since the United States promised to protect users from the negative consequences of bank failures, analysts changed their forecast for a March rate hike from the Fed. They are predicting a 17% chance of a 50 basis point rate hike this month (although back on Friday they were giving a 60.9% chance).