BTC/USD and other cryptocurrencies have rallied since Monday after US authorities announced plans to limit the collapse of Silicon Valley Bank (SVB) and therefore crypto firm Circle assured investors that their pegs are safe.

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The U.S. Treasury Department and the Federal Reserve announced various measures to stabilize the banking system and said SVB depositors still had access to their deposits on Monday. The move occurred when the authorities took over the Signature Bank in New York (SBNY). USDC and USDC=CCCL, which have lost their dollar pegs 1:1 and hit all-time lows on Saturday amid concerns about Circlr's exposure to SVB, the company behind USDC, recovered. There is around $0.9917, close to par and up from last week's low of around $0.88.


Circle CEO Jeremy Allaire said in a tweet that he has $3.3 billion in USDC in reserve deposits at SVB. And it will be fully available when U.S. banks open Monday. Allaire also added that Circle's USDC operations will be open to business, including new automated settlements through a new partnership with Cross River Bank. U.S. officials said that depositors of Signature Bank in New York (SBNY) that will be closed Sunday by financial regulators will also be settled without any losses to taxpayers.


Like SVB, Signature Bank also has clients concentrated in the technology and securities section of its balance sheet have eroded as interest rates soar. In September, approximately a quarter of Signature Bank's deposits came from the crypto sector, but the bank announced in December that it would shrink crypto-related deposits by $8 billion. However, most analysts caution against assuming all is okay with market sentiment after these measures. "The market is still worried about SVB's failure," said Alvin Tan, chief forex strategist at RBC Capital Markets in Singapore.


Tan also added that market turbulence as a result of SVB has reversed market expectations that are rising on the Fed's interest rate path. Meanwhile, Crypto exchange Bitstamp said it would continue to operate normally despite the failure of Signature Bank. Major exchange Binance said it will convert the remaining $1 billion in recovery initiative funds from the BUSD stablecoin to native cryptocurrencies such as Ethereum, Bitcoin, and Binance Coin. Binance launched an industry recovery initiative in November to help crypto projects deal with a liquidity crisis after its rival, FTX, plummeted. 



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