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Cryptocurrencies Rally Despite Closure of Signature Bank, Last Major Crypto Bank in U.S

Cryptocurrencies experienced a surge in prices on Monday, despite the closure of Signature Bank, the last major crypto bank in the U.S. Bitcoin increased more than 13% to $24,089.12, while Ether rose 8.5% to $1,673.29, following a broader rally in risk assets. The jump in risk assets came after U.S. regulators announced plans to backstop all the depositors in failed Silicon Valley Bank and make additional funding available for other banks. Investors were also betting that the Fed will be less aggressive in raising interest rates, now that authorities have stepped in to limit the fallout from SVB and Signature.

Picture: Kumaon Jagran
Bitcoin increased more than 13% to $24,089.12

However, the closure of Signature Bank added to fears by crypto investors and entrepreneurs that regulators are crushing the industry by pressuring banks to cut off their businesses. Signature Bank was another crypto-friendly institution, and the next biggest one next to Silvergate, which announced its impending liquidation last week. Wall Street analysts maintained buy ratings on Signature Bank on Friday, even as the bad news around Silvergate and SVB unfolded.

The end of the Silvergate-Signature duo leaves the crypto industry with few "on-ramps" that allow fiat money to flow into crypto assets. They helped solve this problem by creating easy banking services and payment platforms for crypto companies, namely, the Silvergate Exchange Network and Signature's Signet platform. The absence of these banks could have long-term consequences for the industry, given that it is still reliant on the traditional banking system. However, crypto prices rose on Monday despite this, suggesting that investors remain confident in the long-term prospects of the industry.

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