Bitcoin surged 13%, the biggest one-day increase since the wild price swings seen during November’s market turmoil, and shares of crypto companies rallied following moves by US authorities to stem the spread of concern about the health of the nation’s financial system.
The rally helped to extend the largest cryptocurrency’s recovery from its worst week in about four months, where an equity selloff, jitters in the banking sector and an escalating US regulatory crackdown on crypto combined to hurt investor sentiment. The stablecoin USDC traded at par again with the dollar after depegging last week. Adding to the optimism was Binance’s announcement that it would covert the remaining stablecoin funds from a $1 billion industry stability fund to Bitcoin, Ether and its BNB token.
