After starting the week on a somewhat cautious note, the sentiment in the crypto market has bounced back as the SVB crisis eases somewhat. A joint statement issued by the FDIC and the US Federal Reserve assured that all depositors’ assets in the Silicon Valley Bank will enjoy full protection.
This has helped the Crypto Fear & Greed Index surge from 33 on Monday to 56 today. The bullish sentiment is visible in Bitcoin prices that have rebounded past the key $24,000 mark on Tuesday, posting a gain of more than 9% in the past 24 hours.
Read more about what to expect from the market in our weekly crypto analysis here.
The USD Coin (USDC) depegged from the US dollar late last week following the news about SVB closing down. Circle, the firm behind the USDC, held over $3.3 billion of its $40 billion reserves in the troubled bank, causing significant fear among investors.
The sentiment caused the USDC to trade as low as $0.87 in the market, making USDC/USDT one of the most traded pairs on KuCoin. However, following the FDIC’s latest assurances and the recovery in the risk sentiment among global investors, the USDC has rebounded closer to the key $1 mark.
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