Bitcoin, Ethereum, Dogecoin Rally As Team Biden Cushions SVB Blow

Major coins traded in the green on Sunday evening following news that all Silicon Valley Bank and Signature Bank deposits will be fully refunded to customers. 

What Happened: Apex cryptocurrency Bitcoin (CRYPTO: BTC), which has been trading under $21,000 since Thursday, rose 9.35% to over $22,000 in the last 24 hours. Ethereum (CRYPTO: ETH) was up about 9.60% to change hands above $1,600. Dogecoin (CRYPTO: DOGE) was trading at $0.071, up 7.79% in the last 24 hours.

At the time of writing, the global crypto market capitalization stood at $1.03 trillion, an increase of 7.94% over the last day.

U.S. equities suffered major losses on Friday after the sudden shutdown of tech-focused lender Silicon Valley Bank. The bank’s bond portfolio had incurred substantial losses, resulting in the biggest bank failure since the 2008 global financial crisis that sent shockwaves through the banking sector. The S&P 500 closed 1.45% lower and the Nasdaq Composite dropped 1.76%, exemplifying the broad-based sell-off across the market.

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News Highlights: The Treasury Department is urgently convening a series of emergency meetings to decide whether to protect all depositors of the recently-collapsed SVB bank from financial losses, according to a report from the Washington Post. In close consultation with President Joe Biden, the U.S. government reached an agreement to resolve issues faced by a number of banking institutions, ensuring that taxpayer funds are not affected in any way.

“The U.S. banking system remains resilient and on a solid foundation,” the joint statement said, citing banking regulations established after the 2008 global financial crisis that “ensured better safeguards for the banking industry.”

Ripple (CRYPTO: XRP) also had exposure to SVB, but CEO Brad Garlinghouse made it clear that no disruption to everyday business was expected. In fact, Ripple has already held a majority of its USD in reserve with a wide network of banking partners. To further reassure Ripple users, Brad tweeted: “Rest assured, Ripple remains in a strong financial position”. 

Analyst Notes: Michaël van de Poppe, founder and CEO of Eight Trading, said Bitcoin is making a good move, but it’s still facing a key level at $21,300. If it breaks through this and gains, it could be time for new highs at $25,000 and a good opportunity for longs. If it falls below $20,600, there may be a chance to play longs and $21,300 is the current area for shorts, with the theory that it could go to $18,100 if $20,600 is lost. 

Good move of #Bitcoin here, but still facing a case where I’d be watching this area around $21.3K.

If that breaks & gain -> time for highs at $25K and looking for longs.

$20.6K might be bounce play longs, $21.3K for now shorts.

Losing $20.6K -> theory at $18.1K. pic.twitter.com/cl9rxRB4v5

— Michaël van de Poppe (@CryptoMichNL) March 12, 2023

Van de Poppe added, “People[are]  flying out of stablecoins, straight towards Bitcoin.”

$USDT de-pegging, as it’s trading at $1.0160.$USDC still trading at $0.945.
Other stablecoins are also de-pegging.#Bitcoin and #Ethereum pumping.

People flying out of stablecoins, straight towards #Bitcoin.

— Michaël van de Poppe (@CryptoMichNL) March 12, 2023

This weekend has been “wild” when it comes to price action and news events, according to pseudonymous analyst Pentoshi. Not only have we seen unprecedented levels of volatility, but rumors and fear-mongering, otherwise known as FUD, have been rampant. In this climate of uncertainty, Pentoshi warned it was a long time since volatility was this high.

this weekend price action/news events and FUD have been absolutely wild, dont rememeber volatility being this high in a LONG time

— Bluntz (@Bluntz_Capital) March 12, 2023

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