The Federal Reserve unveiled a new emergency lending program for banks on Sunday, following the collapses of Silicon Valley Bank, formerly the 16th largest bank in the US, and the crypto-friendly Silvergate Bank. Both bank failures sparked a rally in major cryptocurrencies.
According to data from CoinDesk, Bitcoin BTCUSD increased by more than 7% on Sunday to reach beyond $22,000. The price of ether (ETHUSD) rose 7% and temporarily reached $1,600.
US…
The Federal Reserve unveiled a new emergency lending program for banks on Sunday, following the collapses of Silicon Valley Bank, formerly the 16th largest bank in the US, and the crypto-friendly Silvergate Bank. Both bank failures sparked a rally in major cryptocurrencies.
Pushing back the optimistic sentiment is that state authorities on Sunday shut down New York-based Signature Bank, which financial regulators said has a number of crypto customers.
All Signature Bank depositors are made complete, according to regulators.
Signature Bank’s shutdown came after crypto-friendly Silvergate Bank announced on Wednesday that it would cease operations. It could further limit access to banks for crypto companies, which have traditionally been reluctant to partner with crypto entities, in part due to a lack of regulation, industry participants said.
Signature Bank provides deposit services for its customers’ digital assets, but does not invest in, trade, maintain its own balance sheets or custodial digital assets, and does not make loans against or make loans secured by such assets. said the company.
