The price of Bitcoin (BTC) has risen more than 10% in the past 24 hours and is nearing $25,000 U.S. as America’s federal government steps in to shore up the country’s banking sector.
The run up is a stark reversal for Bitcoin, which had fallen below $20,000 U.S. only a week ago following the closure of cryptocurrency lender Silvergate Capital (SI).
In the last five trading sessions, the price of Bitcoin has increased 21% and is currently trading at $24,700 U.S. per digital token.
Other cryptocurrencies are also rallying, including Ethereum (ETH), the second biggest cryptocurrency by market capitalization.
Over the past five trading sessions, Ethereum has rallied 17% to trade at $1,685 U.S.
The overall cryptocurrency market gained more than $70 billion U.S. in the past 24 hours to move back above $1 trillion U.S., according to data from Coin Metrics.
The swift recovery in cryptocurrency prices comes as the U.S. government steps in to reassure depositors and investors following the collapse of Silicon Valley Bank (SIVB) on March 10.
Silicon Valley Bank’s collapse was the biggest banking failure since the 2008 financial crisis and the second largest bank failure in U.S. history.
Bitcoin, which trades around the clock, has seen its price rise nearly 50% since the start of this year. Last December, Bitcoin was trading under $16,000 U.S.
