Bitcoin moved back above $22,000, as the U.S. Treasury moved to avert a regional banking crisis, following the collapse of Silicon Valley Bank. The government confirmed that it will backstop depositors’ funds, giving full access to their capital. Ethereum also moved higher on the news.
Bitcoin (BTC) rose back above $22,000 on Monday, as the U.S. Treasury confirmed it will backstop depositors’ funds.
This will be for both Silicon Valley Bank and Signature Bank, which become the second and third biggest banking failures in U.S. history.
Following a low of $20,475.60 on Sunday, BTC/USD surged to an intraday high of $22,728.52 to start the week.
The rally comes as bitcoin moved back above a floor at $20,000 on Saturday, surging to a ten-day high on Monday.
One of the catalysts of this move was a breakout of the 14-day relative strength index (RSI), which rose past a ceiling at 44.00.
As of writing, the index is tracking at 47.89, which is its strongest point since March 2.
Ethereum (ETH) was also back in the green to start the week, as traders moved to buy the recent dip in price.
ETH/USD climbed to an intraday peak of $1,629.37 earlier in the day, less than 24 hours after falling to a low at $1,468.74.
Similar to bitcoin, this move saw the world’s second largest cryptocurrency hit its highest point in the past tendays.
Overall, ethereum is now trading 1.22% higher than at the same point last week, as bulls appear to have reentered the market.
This has resulted in a slight shift in momentum, with the 10-day (red) moving average now trending upwards.
Should this momentum continue, there is a strong chance that ETH could head back to resistance at $1,675.
This article was originally published by BitcoinNews.