Bitcoin jumps 10% with crypto market topping $1 trillion as U.S. creates backstop for SVB depositors

Cryptocurrencies rallied connected Monday arsenic the U.S. authorities moved to support depositors of the collapsed Silicon Valley Bank and HSBC bought the lender's U.K. arm.

Bitcoin was up astir 10% astatine 3 a.m ET astatine $22,560.20, its highest level successful 10 days, according to CoinDesk data. Ether was besides astir 10% higher astatine $1,614.89.

The wide cryptocurrency marketplace gained much than $70 cardinal successful the 24 hours to 2 a.m. ET, jumping backmost supra $1 trillion connected Monday.

It has been a rollercoaster thrust for crypto markets aft the illness past week of Silvergate Capital, a large lender to the crytpo industry. Silvergate said Wednesday it is winding down operations and liquidating its bank.

Then came the illness of Silicon Valley Bank connected Friday successful what was the biggest banking nonaccomplishment since the 2008 fiscal crisis.

Both Silvergate and SVB enactment their wealth into U.S. Treasurys which person mislaid worth arsenic the U.S. Federal Reserve has raised funny rates. These banks person been forced to merchantability these bonds astatine a nonaccomplishment to enactment up their superior position.

That was followed connected Sunday by the closure of Signature Bank, a large lender successful the crypto industry, by U.S. regulators to stem immoderate contagion to the broader banking sector.

These moves by regulators to make a backstop for SVB and support depositors successful these institutions has boosted capitalist confidence.

The U.S. Treasury, Federal Reserve and Federal Deposit Insurance Corporation said Sunday that depositors of SVB volition person entree to each of their wealth starting Monday.

"No losses associated with the solution of Silicon Valley Bank volition beryllium borne by the taxpayer," the regulators said.

Depositors astatine Signature Bank volition beryllium "made whole," they added.

"Given the Fed announcement implicit the play of a backstop for banks and specifically Silicon Valley Bank, markets person turned euphoric knowing that depositors' wealth is harmless and a large imaginable slope tally has been averted," Vijay Ayyar, vice president of firm improvement and planetary astatine crypto speech Luno, told CNBC via email.

Adding to that, HSBC said it had agreed to get the U.K. limb of SVB for £1 ($1.21). The U.K. Treasury said Monday that "no payer wealth is involved, and lawsuit deposits person been protected."