Bitcoin Price Soars Over $24,000 Amid Bank Failure Concerns

The price of bitcoin, the world’s largest cryptocurrency, topped $24,000 on Monday after two banks failed last week and raised broader concerns about the US banking system.

The price jump came after the closure of Silicon Valley Bank and Signature Bank. The latter was a major crypto lending institution.

However, on Sunday night, the US Treasury Department, the Federal Reserve, and the Federal Deposit Insurance Corporation announced that they would support all Silicon Valley Bank and Signature Bank depositors, both insured and uninsured. , and would make funds available to other banks to prevent further bankruptcies.

Ethereum, the second largest cryptocurrency, rose to around $1,700, an increase of 15%.

According to TechCrunch, the general crypto market it was up 14% on the day.

The uncertainty caused a stop trading in several bank actions on Monday after the second and third largest bank failures in US history. Only the collapse of Washington Mutual in 2008 before the great recession was bigger.

The $42 billion run on Silicon Valley Bank on Thursday prompted regulators to shut down the financial institution on Friday. Many crypto firms held significant assets in SVB, causing chaos in the crypto market until the Biden administration stepped in, with President Biden declaring the banking system “safe” on Monday.

“Americans can rest assured that our banking system is safe,” Biden said in a White House statement. “Your deposits are safe. Let me also assure you that we will not stop at this; We will do whatever it takes.”

President Biden added that he was asking Congress and regulators to improve the rules for banks and financial institutions.

Although bank stocks fell sharply on Monday, the Dow Jones Industrial Average, the Nasdaq and the S&P 500 all rose slightly at midday after Biden’s remarks.