Binance to Convert $1B to BTC, BNB, ETH, Bitcoin Price Soars to $22.6K

• Binance announced that it will convert the remaining $1B from its Industry Recovery Initiative into BTC, BNB, and ETH.
• The announcement came after Silicon Valley Bank and Signature Bank shut down due to a bank run in the United States.
• Following the news, Bitcoin surged to an intraday high of $22,600 on Binance.

Binance Announces Conversion of Funds

Binance recently announced that they plan to convert the remainder of the $1 billion Industry Recovery Initiative funds from BUSD to native crypto – including BTC, BNB, and ETH. The announcement came as a response to changes in stable coins and banks following a bank run in the United States.

What Led To The Conversion?

The past week was wild for cryptocurrency markets as well as conventional banking institutions. A major US-based bank – Silicon Valley Bank – experienced what was essentially a bank run and was forced to shut down by authorities to prevent further panic. This prompted both the Federal Reserve and Treasury as well as FDIC to come up with a rescue plan while also shutting down Signature Bank – one of three crypto-facing financial institutions in the US.

Crypto Market Reacts Bullishly

Unsurprisingly, news of Binance’s conversion sent shockwaves throughout cryptocurrency markets leading Bitcoin prices surging upwards towards an intraday high of $22,600 on Binance while Ethereum gained around 4% on the day following news of the conversion.

Industry Recovery Initiative Funds

The Industry Recovery Initiative funds were initially put forth by Changpeng Zhao back in 2020 after he raised concerns regarding mainstream adoption rates for cryptocurrencies being limited by current conditions such as lack of liquidity or inadequate infrastructure among others. The main goal behind these efforts was to create more accessible marketplaces for users getting involved with cryptocurrencies thereby boosting adoption rates over time.

Conclusion

It remains unclear how exactly this move will affect cryptocurrency markets but one thing is certain; it provides a much needed boost during turbulent times when traditional banking systems are facing disruption due to unforeseen circumstances such as bank runs or other economic crises out of their control.