Tuesday saw a sharp increase in the price of Bitcoin and other popular cryptocurrency tokens due to the repercussions from Silicon Valley Bank (SVB). However, some stablecoins lost their peg to the US dollar during the crisis, but the US dollar, in particular, was showing its muscles.

A 10% increase later, Bitcoin reached the $24,000 level. Getting a job is a good thing, but it’s not always easy. The price of Ethereum, its biggest rival, was up 5% and selling close to $1,700. Blue chip tokens underperformed the altcoins, rising up to 40%.

Since these banks served as the main entry points for dollars into crypto assets, the closing of three crypto-friendly banks, Silvergate, SVB, and Signature, is likely to cause short-term liquidity problems.

“The use of new banking partners by the cryptocurrency business may quickly change. Many professionals in the sector are switching to Mercury, BCB Group, Axos, and a few other institutions that support cryptocurrency startups. This might cause cryptocurrency businesses to relocate to countries with more benevolent regulations, like Switzerland, Hong Kong, Qatar, and the UK.”

Except for the stablecoin Tether, which is pegged to the US dollar, all other leading and well-known crypto tokens were significantly rising on Tuesday. BNB gained 7%, Bitcoin gained 4%, and Polygon gained 4% each, respectively. Shiba Inu, Bitcoin, Polkadot, and Solana all saw a 3% increase.

The market capitalization of all cryptocurrencies traded significantly higher, crossing back over the $1 trillion threshold. It rose another 6 per cent to $1.08 trillion in the last 24 hours. However, the overall trading amount increased by more than 24%, or nearly $90,50 billion.

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