Crypto-related stocks are mostly posting modest gains alongside the price of bitcoin in premarket action on Monday following government moves on Sunday to stem what could have been shaping up as a banking crisis.
The price of bitcoin (BTC) had plunged below $20,000 late last week following the failures of Silvergate Bank (SI) and Silicon Valley Bank (SIVB). While Silvergate was a pretty small lender, the collapse of Silicon Valley Bank – the 2nd-largest bank failure in U.S. history – had many going into the weekend worried about systemic contagion.
A number of government agencies Sunday evening teamed to protect all depositors at Silicon Valley Bank. At the same time, New York State regulators shut down Signature Bank (SBNY), with the government also promising to protect all depositors at that lender. The actions sent U.S. stock index futures all higher by more than 1%, though that rally has lost steam shortly before the open. At press time, only Nasdaq 100 futures remain in the green, up 0.2%.
The price of bitcoin on Sunday bounced as high as $22,600 on the news. It’s currently pulled back a bit to $22,100. Among stock movers this morning, MicroStrategy (MSTR) is higher by 5.6%. Bitcoin miners Marathon Digital (MARA) and Riot Platforms (RIOT) are up 5.5% and 2.6%, respectively. Crypto exchange Coinbase (COIN) isn’t yet participating in the rally, down 0.6%.
