Fed Looks To Backstop Banks As SVB, Signature Bank Go Under – March 13

📈 30 Second Cryptocurrency Price Summary

Current Bitcoin Price$24,119

Bitcoin price has rocketed back above the $24,000 mark, following a concerning fall below the crucial $20,000 this weekend.

Top-20 altcoins have also bounced back extremely well, as Ether regains 13%, BNB rises 11% and Litecoin leads with an 18% rally.

Top Stories for March 13, 2022 🔥

👉 Fed Looks To Backstop Banks As SVB, Signature Bank Go Under

The US Federal Reserve and Treasury have launched a new liquidity facility, known as the Bank Term Funding Program, to prevent contagion from the collapse of Silicon Valley Bank.

The program resembles the pre-existing discount window, but allows banks to borrow against the same types of securities for up to a year instead of three months.

Treasury is backstopping the program with $25bn from the Exchange Stabilization Fund, but officials cannot guarantee that the funds will not be touched. The Fed believes the risk of loss is preferable to a broader breakdown in the financial system, which could prove even more costly.

👉 USDC Regains Dollar Peg After Turbulent Weekend

USD Coin (USDC), a stablecoin issued by Circle, has regained its peg to the US dollar after trading as low as 86 cents  over the weekend.

The brief de-pegging was triggered by concerns about its cash reserves at Silicon Valley Bank, which has been taken over by regulators. Many crypto exchanges suspended USDC-related transactions, but some have since resumed trading certain USDC pairs.

Circle acknowledged that about $3.3 billion of USDC’s funds were held in the bank, but assured investors it would cover any shortfall in reserves using corporate funds.

👉 Crypto Funds See Largest Weekly Outflows Ever

Data from digital asset management firm CoinShares shows that crypto investment products experienced their largest outflows on record, with $255m exiting those products last week.

The figure marked the fifth consecutive week of net outflows and comprises 1% of total assets under management. Bitcoin saw the largest outflows during the week, totalling $244m, and short-bitcoin products experienced outflows of $1.2m.