Major cryptocurrencies have rallied in the past two days, with increasing valuations spiking the entire crypto market by 7%.
- Following the federal government’s intervention on behalf of Silicon Valley Bank (SVB) users, cryptocurrencies as a whole rallied 7%, raising the market cap to $1.05 trillion, Forbes reports.
- Crypto valuation dipped on Friday following the ongoing SVB crisis, which destroyed crypto-friendly Silvergate Bank. In the past 24 hours, Bitcoin increased by 6.5%, and Ethereum increased by 4.6%.
- The price of Bitcoin briefly spiked at $26,110.50, before settling to $25,507.82 on Tuesday afternoon. This marked a noted increase from an earlier dip below $21,000.
Why It’s News
Cryptocurrency is a notably volitile currency, with the price constantly fluctuating based on demand and circumstances in the market. Multithousand-dollar adjustments per day are not uncommon. The past year has seen more significant shifts in valuation, with crypto prices peaking in November 2021 before crashing into the ongoing “crypto winter,” made worse by the collapse of major exchanges like FTX.
As we previously reported, Bitcoin saw a major boost in January, with prices raising from below $17,000 to over $25,000 in a matter of weeks. Prices dipped briefly on March 9, following a federal Bitcoin transfer and overall crypto valuations were hit again on Friday by SVB.
The collapse of Silicon Valley Bank, Signature Bank, and Silvergate Bank reflect three of the largest bank failures of U.S. history.
Despite ongoing federal efforts to crack down on crypto, activists in favor of the market remain bullish. ARK Invest CEO Cathie Wood continues to praise Bitcoin and says the token will be worth over $1 million within seven years.
CNBC analyst Jim Cramer offered a more negative take on Bitcoin’s rally, arguing that the currency’s value is being manipulated by external forces, and encouraging investors to sell their Bitcoin. “I would sell my Bitcoin right into this rally. Believe me, I had not been a believer one time in Bitcoin, not here, not now.”