The bankruptcy of Signature Bank on Sunday, the third and final major crypto bank to close after Silvergate and SVB last Wednesday and Friday, heralded a Black Monday for the industry, but it didn’t happen. Contrary to forecasts, the market, on the contrary, recovered strongly after falling on Friday. Bitcoin is up nearly 30% since last weekend (to over $25,900 on Tuesday afternoon, the highest level since June) and Ether is up over 20% (around $1,765).
The crypto market has avoided a crash like the one that followed FTX’s bankruptcy in November. It has shown amazing resilience as global markets were swept away by the SVB storm. For Bradley Duke, co-CEO of ETC Group, this quick recovery is due to the combined actions of the US Treasury Department, the Federal Reserve and the Federal Deposit Insurance Corporation over the weekend. “The fact that they are committed to guaranteeing all SVB depositor funds has reassured investors,” he said.