Bitcoin soared to a high of $26,514 on Tuesday, up 30% since crashing below $20,000 on Friday.
What caused the king of crypto to rebound in such a spectacular fashion? Here are three possible reasons:
Silicon Valley Bank’s Bailout
Much of Bitcoin’s price trouble last week stemmed from uncertainty surrounding the crypto industry’s biggest banking partners going bust. Those partners include Silvergate, Signature Bank, and Silicon Valley Bank – the latter of which was seized by the FDIC after a $42 billion bank run on Thursday.
The event – which both crunched Bitcoin and destabilized USDC – was addressed by the Federal Reserve on Sunday, when it promised to fully bail out all of the bank’s depositors. The announcement was a major relief to a slew of crypto firms with exposure to the bank, including Circle, BlockFi, Ripple, Pantera Capital, and Yuga Labs.
Notably, the Fed claimed bailouts would come at no expense to the taxpayer – a sign to many that the Federal Reser
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