Why Bitcoin, Ethereum, and Dogecoin Popped on SVB Rescue Rumors
The stock market may be closed this weekend, but crypto markets trade 24/7, so this is where we're seeing the minute-by-minute market reaction to Silicon Valley Bank's (NASDAQ: SIVB) collapse and potential rescue this weekend. Crypto values collapsed starting Thursday when the bank run began, but the sentiment has changed in the last few hours.
Between 1 p.m. and 3 p.m. ET, Bitcoin (CRYPTO: BTC) jumped 4.1%, Ethereum (CRYPTO: ETH) popped 5.1%, and Dogecoin (CRYPTO: DOGE) was up 3.2%. That's a big increase in a couple of hours, but it may be warranted today.
As ironic as it may seem, the crypto market is reacting to the potential rescue of Silicon Vallen Bank's depositors, who could have been frozen out of billions of dollars in assets on Monday, potentially starting a bank run across the U.S. This is the kind of centralized financial market crypto was supposed to be escaping from. But, in reality, cryptocurrency has been much more correlated with risky assets than they have been a hedge.
Source Fool.com
