The Bitcoin cryptocurrency reached its highest level in nine months on Tuesday. Ignoring Investor Panic After US Bank SV Collapseb.
Bitcoin, the most famous of the cryptocurrencies born in 2008, reached $26,300, the highest level since June.
The rise was fueled by US inflation data, which slowed to 6% year-on-year, the lowest level in almost a year and a half. But the decentralized currency also benefited from Sunday’s Federal Reserve (Fed) decision to protect SVB depositors.
Bitcoin rises 30% since FridayIt reached its all-time high when it hit $68,992 at the end of 2021.
Last week, the cryptocurrency market collapsed after a small US bank, Silvergate Bank, announced its liquidation. The La Jolla, California-based institution has become a destination for the crypto community and began to decline after the FTX platform debacle.
The turmoil in America’s banking system continued, with two more banks shutting down. The final bank is Silicon Valley Bank (SVB), which announced bankruptcy on Sunday. Soon, the Federal Reserve (Fed), the central bank of the United States, announced an intervention to ensure Americans’ savings, “calming” the market.