Just a few days before, Bitcoin’s price momentarily fell below the critical psychological ceiling of $20,000, which marked the lowest point since the year began. The disconcerting news of Silvergate Bank’s demise, which had long been viewed as a crypto-friendly organization, was the main cause of this decline in value. In addition, worries about the health of Silicon Valley Bank, another financial institution with strong links to the bitcoin industry, had started to grow.

The United States government’s assurance to the public that it will take action to protect customers’ cash in light of the crisis caused the tide to start turning. Concurrently, the UK operations of Silicon Valley Bank were about to be purchased by the worldwide banking powerhouse HSBC, which generated headlines. These events gave Bitcoin a much-needed boost, boosting investor confidence and triggering the cryptocurrency’s quick price recovery.

Surprisingly, this favorable attitude did not just apply to Bitcoin. Major altcoins like Ethereum (ETH), Cardano (ADA), and Solana (SOL) all witnessed significant increases in their respective prices on that exact Monday, contributing to the overall uptick in the cryptocurrency market. 

The market’s confidence and resiliency in the face of current difficulties were shown by the synchrony of price moves across a number of cryptocurrencies.

The value of other top cryptocurrencies also performed well, which helped lift the total market capitalization of cryptocurrencies back beyond the crucial threshold of $1 trillion. Although this recovery brought some much-needed respite, it is important to note that the cryptocurrency sector is still cautious as it closely observes the current events and uncertainty caused by the closure of Silvergate Bank. These doubts are still a source of worry for the sector, highlighting the volatility and unpredictability that characterize the world of cryptocurrencies.