The cryptos are mounting a recovery charge in the wake of both the Silvergate Capital implosion and the recent Silicon Valley Bank crisis. The two largest coins in the market, Bitcoin (BTC) and Ethereum (ETH) show signs of price upsurges after the volatile and turbulent last few days that left the market trading bearishly. This article will explore the chaos that unfolded within the cryptocurrency market over the last few days and discuss an interesting new concept called LockYourCrypto that allows crypto users to safely deposit their funds and protect their assets.
The Volatile Crypto Market Has Been Affected By Multiple Banking Crises
If anything can emphasise just how unstable the cryptocurrency market can be it’s the chaotic week that just passed by in which the Silvergate Capital crisis left major cryptos lurching at the huge price falls before the Silicon Valley Bank prompted a major crypto resurgence. There’s a lot to talk about here so let’s get started!
The crypto market had been trading bearishly going into March and this escalated when Silvergate, a bank for cryptos, announced it would be ceasing its operations as it recorded severe financial losses. Following the FTX crash, Silvergate began bleeding financially as customers walked out with $8.1bn and the bank lost 60% of its deposits in just one quarter. Upon delaying publishing its 10-K report, Silvergate feared that further losses would leave it less than capitalised.
As it lurched from crisis to an announcement it was closing its operations, the prices of multiple cryptos were hit hard.
But now the crypto market has been thrown a log in the thrashing river in the form of Silicon Valley Bank.
Bitcoin And Ethereum Lead Price Rally After Silicon Valley Bank Crisis
After the storm comes the sunshine. A crisis at the Silicon Valley Bank became an opportunity of sorts for major cryptos like Bitcoin and Ethereum.
SVB ran into a crisis when it sold a portfolio containing mostly U.S. treasuries or government bonds at a loss and announced a share sale to stabilise its financial sheets. This led to a capital flight as SVB customers withdrew funds with the total deposit call reaching $42 billion last week on Wednesday – amounting to nearly $25 billion of the entire deposit base, which stands at $173 billion.
So what did this do for Bitcoin and Ethereum? BTC had seen its price slump but it recovered from a two-month nadir near $19,500 to $22,500 – although this remains some way off where it was before its bearish price swing. Ethereum rallied by 15% and its market cap, which was around $170 billion in the 24 hours after Silvergate announced closure, climbed to just over $194 billion following the SVB crisis.
As some have shown, what it underlines is that in times of financial uncertainty and loss of trust in stablecoins and bank deposits, traders look to cryptos and vice versa. Right now, with the financial market reeling from the SVB fallout, traders of BTC and ETH tokens will be licking their lips as Bitcoin and Ethereum mount much-needed recoveries.
LockYourCrypto Offers Investors A Safe Place To Store Their Cryptos
Safeguarding crypto investments has always been critical as there is always a need to be cautious against the risk of theft or security breaches. The world of digital finance is accompanied by a high degree of risk that requires secure methods to ensure the safety and privacy of someone’s data and funds.
LockYourCrypto is an intelligent platform that allows investors to deposit their funds and choose how long the cryptos will stay deposited through a very simple process. Acting as a crypto vault, it takes careful steps to ensure verification and reliability to allow users to store and transfer crypto assets. So if you decide to deposit some crypto funds for a certain amount of time, you are sent a certificate to confirm the details and verify the deposit. It really is as simple and effective as that to stay safe within the cryptocurrency landscape today.
If you would like to protect your crypto assets today then visit LockYourCrypto’s website to see more.
Website – Lockyourcrypto.com