This week in coins: Bitcoin, Ethereum post mega rallies after bank intervention

This week in coins. Illustration by Mitchell Preffer for Decrypt.

After three consecutive weeks of lossesprices for holders of the two largest cryptocurrencies by market cap turned green this week.

Bitcoin (BTC) is up 36% over the past seven days and is now trading at around $27,515, according to CoinMarketCap data.

Last week, bitcoin lost around 10% in response to news that industry-servicing Signature Bank and Silicon Valley Bank (SVB) had both failed.

Industry #2 Ethereum (ETH) is back where it was before the downturn. ETH is up 27% in the seven days and is currently changing hands at $1,832.

The entire crypto market came back to life as of last Sunday night after the Federal Reserve, US Treasury Department and FDIC announced they would intervene Backstop for all deposits with signature and SVB. The promise was repeated by President Biden.

Crypto didn’t come off entirely unscathed, however: the industry lost its two most crypto-friendly banks, and now conflicting reports are swirling as to whether the FDIC is tell prospects of Signature Bank that it has to give up the crypto business of the bank. Former Massachusetts Congressman Barney Frank claimed the Feds closed Signature to avoid a “Anti-Crypto Message” and a Reuters Report later in the week appeared to confirm Frank’s claims; The FDIC has since denied the claims made in the Reuters Story.

Over in the UK, Chancellor of the Exchequer Jeremy Hunt announced that HM Treasury – the UK Treasury – had negotiated a bailout in which HSBC took over the UK arm of SVB for £1 whole British companies with exposure to the bank.

In addition to these interventions, investors were drawn to risky assets such as crypto and tech stocks this week after signs emerged that the banking crisis could spill over into Europe’s TradFi institutions: CreditSuisse announced on Wednesday a $54 billion loan by the Swiss National Bank to support their liquidity.

Virtually all of the top 30 cryptocurrencies by market cap posted significant gains this week, but some of the biggest gainers alongside Bitcoin and Ethereum were Filecoin (FIL), which surged 33% to $6.39, Polygon (MATIC), which fell 22 % gained $1.24, Solana (SOL) up 28% to $22.30 and BNB up 25% to $344.76.

USDC — Circle-issued dollar-pegged stablecoin — slipped out of its peg last weekend and fell to 87 cents after uncertainty about the company’s exposure to the troubled banks. It stabilized again this week in reaction to the rescue messages.

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