Major cryptocurrencies exhibit signs of stabilisation in response to U.S. authorities’ emergency measures aimed at averting the collapse of Silicon Valley Bank

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13th March 2023 – (Hong Kong) Major cryptocurrencies showed signs of stabilisation on Monday following emergency measures announced by U.S. authorities to prevent the collapse of Silicon Valley Bank (SVB) from affecting the broader financial system. The issuer of the USD Coin stablecoin, Circle, stated that USDC remained redeemable with the dollar and that its reserves held at the failed SVB Bank would be fully available when U.S. banks opened on Monday. Stablecoins, which are designed to maintain a steady value and are typically backed by traditional assets, are a vital component of crypto trading. However, the exposure of Circle to SVB resulted in USDC dropping to a record low of $0.87 on Saturday. Despite the U.S. measures, market sentiment remains skittish with analysts predicting that volatility will persist in the coming days. The collapse of Signature Bank, which was taken over by New York’s chief financial regulator, adds to the already strained relationship between the banking and crypto sectors due to growing regulatory crackdowns.