• This week, Bitcoin’s price soared by 30% on the back of major macroeconomic developments in the US.
• Silicon Valley Bank went bust, leaving many investors worried about their deposits.
• The US Government responded with a rescue plan, promising that all depositors will be made whole and lending $300 billion to banks.
Bitcoin Skyrockets 30% Weekly
This week Bitcoin has seen a surge in value, with its price reaching highs last seen nine months ago in June 2022. This marks a 30% increase, and it comes on the back of major macroeconomic developments in the United States.
Silicon Valley Bank’s Troubles
Silicon Valley Bank – a major financial institution in the US with a substantial amount of VC money in deposits – revealed a hole in its balance sheet and was unable to patch it through a share offering. As a result, depositors attempted to get their money out which caused authorities to shut down the bank.
US Government Bailout Plan
The US Government was quick to assemble a rescue plan, promising that all depositors will be made whole and lending $300 billion to banks. While they refuse to call it a bailout, many claim that this is exactly what it is.
Cryptocurrency Market Impact
The cryptocurrency market also saw changes as a result of these events; BTC’s total capitalization added $165 billion while sentiment escaped from fear zone temporarily.
This week marked an important shift for Bitcoin as well as for other cryptocurrencies whose prices have been increasing over the past few days due to these macroeconomic developments in the US. Although much remains uncertain about how this will affect global markets going forward, one thing is certain: investors are paying attention as more funds flow into crypto assets like never before