Bitcoin skyrocketed by roughly $2,000 in a day as the US Federal Reserve announced lending $300 billion to certain struggling US banks, including Silicon Valley Bank and Signature Bank.
The altcoins have also turned green today, with ETH reclaiming $1,700, while BNB, MATIC, DOGE, and DOT are up by over 5%.
BTC Soars Above $26K
A lot can change in the cryptocurrency space within a week and the past seven days are a prominent example. Bitcoin struggled to remain above $20,000 last Friday amid the growing banking issues with several organizations linked to the industry.
After a relatively calm weekend in which BTC stood around $20,500, the asset went on a tear in the following days.
It first soared past $22,000 before another couple of leg-ups drove it to $26,500 on Tuesday. This became its highest price tag since June 2022. The bears finally came up to play and pushed the cryptocurrency south. As a result, bitcoin slipped to $2,000 on Wednesday.
However, the US central bank said it lent $300 billion to support some US struggling banks. Over $140 billion went to Signature Bank and SVB.
This had a profound effect on BTC’s price performance as the asset exploded by another few grand and reclaimed $26,000. It trades there as of now as well, which has pushed its market capitalization to above $500 billion. Its dominance over the alts also keeps rising and has tapped 45%.
Alts in the Green
Numerous altcoins suffered yesterday, but the landscape is entirely different today. Ethereum has bounced back above $1,700 following a 4% daily increase. Binance Coin is well above $330 after gaining over 5% in the past 24 hours.
MATIC, Dogecoin, Polkadot, and Avalanche are with similar increases. Cardano, Solana, Shiba Inu, Ripple, and Litecoin are also in the green, albeit with more modest gains.
STX has soared the most from the mid-cap alts (19%). As a result, the asset has jumped above $1.
Overall, the crypto market cap has added $50 billion in a day. This has helped the metric to reclaim the coveted $1.1 trillion line.
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