Sirwin
Sirwin

Binance it's saving the crypto world!

By Crypto4you23 | Cryptoanswers22 | 14 Mar 2023


Introduction:

 

The day for cryptocurrencies begins with news that caused Bitcoin (BTC) to surge more than 14% in the last 24 hours.

Binance CEO Changpeng Zhao, known as CZ, announced a "help" to the market worth $1 billion.

The news gave the sector some relief, which was recently shaken by a "run on banks" in the financial sector.

 

Why this is happening?

 

Last week, Silvergate, the bank that bet heavily on the cryptocurrency market, particularly in the failed FTX exchange, closed its doors.

Shortly thereafter, Silicon Valley Bank (SVB) approved a capital increase of $2.25 billion, triggering an asset sell-off in the financial sector worldwide.

With liquidity tight and fear of a new banking crisis reminiscent of 2008, albeit on a smaller scale, cryptocurrencies also suffered heavy losses.

At the lows, BTC hit a floor of $19,600, but regained higher price levels over the weekend.

This is because the Federal Reserve (Fed, the US Central Bank) announced a plan to help these institutions, easing tensions in the traditional market.

CZ's help to the crypto sector also contributed to the surge in prices.

 

Changpeng Zhao it's helping investors:

 

Early on Monday (13), the CEO of Binance announced the conversion of $1 billion in the dollar-backed stablecoin Binance USD (BUSD) into bitcoin, ethereum (ETH), and BNB (BNB).

Another piece of news supporting the cryptocurrency sector is the return of stability to stablecoins, tokens pegged to currencies such as the dollar.

The USD Coin (USDC), the fifth-largest stablecoin on the planet, momentarily lost its parity with the US dollar after its issuer, Circle, revealed it had $3.3 billion in deposits at SVB.

Stablecoins are considered the backbone of the crypto sector because they have a reference in a strong currency like the dollar.

They are also used to reduce transaction and conversion fees, as in the case of CZ with the previously mentioned BUSD.

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