With the banking crisis involving institutions like Silicon Valley Bank, Signature Bank, and Silvergate, investors are swarming to cryptocurrency alternatives.
The financial chaos brought on by the failure of major banks has benefited DEX and CEX tokens. Over the previous 24 hours, the prices of a number of these assets have increased, including those of OKB, GMX, dYdX, and GT.
Although it's not apparent whether the banking crisis is the only factor driving the price increase, it's generally accepted that some investors are turning their attention to these particular coins. OKB has increased by 13% during the past day, GMX by 10%, dYdX by 8%, and GT by 7.5%.
After suffering a setback a few days ago, the overall value of the crypto market has seen a significant climb recently. Tokenization-related tokens are among the other types of tokens that are becoming more popular. With a price increase of almost 8%, SNX is a notable case in point.
Never thought I would say this. 1 $BTC is still 1 $BTC.
— DK (@dkcrypto13) March 10, 2023
Never been truer than today when idiotic politicians take victory laps over the demise of their country‘s financial institutions. First time I see a need for #bitcoin as a store of value. So f‘ing irresponsible. pic.twitter.com/1M7vt7lEbv
The total market value of the cryptocurrency industry is currently $1.08 trillion, a rise of 5.59% over the previous day. In the meantime, several companies' stocks are experiencing significant losses, frequently in double digits. The majority of these concern banking organizations.
Bank failures make for difficult times for the global market
The previous several weeks have seen the collapse of several institutions. The most noteworthy is Silicon Valley Bank, which some worry could spread like a virus. HSBC bought the UK. sector of the bank for one pound, or roughly $1.21, aiding the United Kingdom. customers.
Meanwhile, the Federal Reserve made the decision to close the mainly cryptocurrency-focused Signature Bank. System risk was mentioned as one of the reasons for the decision by the authorities.
Then there was Silvergate, which failed to file its annual report. Investors eventually switched to stablecoins as a result of its eventual insolvency.
Critics Blame Bitcoin for the Financial Crisis
Some in the sector think that the American government's actions against the banks are anti-crypto. There was a "strong anti-crypto message," according to a board member of the Signature bank, but Blockchain Association Chief Policy Officer Jake Chervinsky thinks that crypto isn't to blame for bank issues.
In any case, the government will undoubtedly attempt to impose some sort of market regulation.
As the world's markets are in upheaval, bitcoin and other assets are holding up well.
Bitcoin has increased in value by almost 10% during the last day and is currently worth about $24,500.
