Bitcoin Recovery: US Officials' Action and Circle's USDC Automated Minting Boost Confidence in Crypto Market
Bitcoin (BTC) appears to be recovering from a recent sharp decline in value, triggered by investor panic due to problems at Silicon Valley Bank and Silvergate. However, recent announcements by U.S. officials that they would assist clients in recovering stolen monies may have contributed to the recent uptick in the price of Bitcoin.
As per the latest figures, the value of Bitcoin has spiked by over 7% in the last day and a half, with one Bitcoin currently valued at $24,070. Furthermore, the trading volume of BTC has seen a staggering 77% increase during the same period, taking it to $37,954,477,018.
In this article, we will explore how the recent actions of watchdogs may have affected the price of Bitcoin and discuss other developments in the cryptocurrency market.
Treasury Secretary Janet L. Yellen, Chairman of the Federal Reserve Board Jerome H. Powell, and Chairman of the Federal Deposit Insurance Corporation Martin J. Gruenberg recently issued an official statement regarding Silicon Valley Bank and Silvergate, aimed at protecting the U.S. economy by strengthening public trust in the banking system. This new development by the regulators has restored investor confidence in crypto.
Yellen believes that appropriate actions need to be taken by the relevant regulatory bodies for the banking sector to continue safeguarding deposits and providing access to credit for individuals and businesses in a manner that fosters strong and sustainable economic growth.
After consulting with the President and taking advice from the boards of directors of the FDIC and the Federal Reserve, Secretary Yellen gave the green light for actions to be taken that will make it possible for the FDIC to complete its resolution of Silicon Valley Bank in Santa Clara, California, in a way that will guarantee the complete safety of all depositors. Beginning on March 13, all depositors will have access to their funds. The settlement with Silicon Valley Bank will not result in any loss of cash to the government.
It was also announced that Signature Bank, based in New York, will be closed after the state chartering board granted a similar systemic risk exemption. All depositors will be fully compensated, and the government will have no liability, much like the Silicon Valley Bank settlement.
Circle Introduces Automated Minting for USDC Amid Watchdogs' Latest Move
With the help of new financial partners, Circle, a leading producer of digital dollar stablecoins, has announced automatic minting and redemption of USDC for its users. Circle is taking this step to safeguard the foundation of its internet-based money and payment systems from the dangers associated with fractional reserve banking.
Despite bank contagion impacting crypto markets, Circle CEO Jeremy Allaire has emphasized that the business will continue to ensure the trustworthiness, security, and 1:1 redeemability of every USDC in circulation.
Most of the USDC reserve ($32.4B) is kept in BNY Mellon as cash, while short-term U.S. Treasury Bills collateralize the remaining cash. BNY Mellon is responsible for safekeeping the reserves, while BlackRock oversees the assets' liquidity and administration. Circle publishes monthly USDC attestation reports on its website to be transparent with its investors.
Watchdog's Impact on Bitcoin Price
It is evident that recent announcements from U.S. officials have impacted the price of Bitcoin positively. Despite the recent decline in value due to investor panic, Bitcoin appears to be recovering, and investor confidence in cryptocurrency is gradually being restored.
With watchdogs taking appropriate measures to safeguard the banking sector and protect depositors, investors may now feel more secure in investing in cryptocurrency. Additionally, the automatic minting and redemption of USDC by Circle further helps to assure investors that their investments in cryptocurrency are secure.
Conclusion
The recent actions of watchdogs have positively impacted the price of Bitcoin and helped to restore investor