The financial crisis is driving investors into the cryptocurrency market.

Tuesday, March 14, 2023. Cryptocurrencies are seeing much growth and mobility today as the US government moved to protect Silicon Valley Bank depositors while HSBC acquired the bank's UK arm.

This positive element gave hope to depositors and investors that the banking crisis was temporary and that the regulatory authorities effectively controlled the problem.

In particular, according to investing.com, Bitcoin is up 9.85% in the last 24 hours and is moving at $22,199, the highest level over the previous ten days, according to CoinDesk data.

Ether, meanwhile, is also up 9.30% higher at $1,587.64.

Overall the cryptocurrency market gained over $70 billion in 24 hours, surpassing $1 trillion on Monday, March 13, 2023.

The cryptocurrency market has been under intense pressure since last week's collapse of Silvergate Capital, a significant lender to the cryptocurrency industry.

Silvergate announced on Wednesday, March 7, 2023, that it is winding down its operations and liquidating its banking business.

Then came the collapse of Silicon Valley Bank on Friday, the biggest bank failure since the 2008 financial crisis.

Silvergate and SVB invested in US Treasuries, which have lost value as the US Federal Reserve (Fed) has raised interest rates.

These banks were forced to sell these bonds at a loss to shore up their capital position.

This bank action was followed on Sunday by the closure of Signature Bank, a central bank in the cryptocurrency industry, by US regulators to stem any contagion to the broader banking sector.

These moves by regulators to limit contagion and protect depositors at these institutions have boosted investor confidence.

"The taxpayer will bear no loss related to the resolution of Silicon Valley Bank," regulators said.

Signature Bank depositors will be "compensated," the authorities added.

In addition, HSBC announced that it had agreed to acquire the UK arm of SVB for £1. 

On Monday, March 13, 2023, the UK Treasury announced that "no taxpayers' money is involved and customer deposits are protected."

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