Bitcoin Soars to Over $23,000 Amidst President Biden’s Reassurance of Safe US Banking System

By Tsunami On Mar 13, 2023

As the world grapples with the news of the recent bankruptcy of Silicon Valley Bank (SVB) and Signature Bank, the cryptocurrency market has experienced a sudden surge in prices. Despite the collapse of these three major American banks, US President Joe Biden emphasized in a recent speech that the US banking system remains safe and secure.

On March 13, Coin360 reported that Bitcoin had surged by 14.5% to surpass $23,000, reaching $23,516 in trading. Ethereum also recorded a 12.1% increase to $1,647, while BNB soared by 11.1% to $308. Many other major cryptocurrencies have also seen gains of over 10%.

Amidst this sudden surge in cryptocurrency prices, the total market capitalization of the entire cryptocurrency market has exceeded $1.3 trillion, with Bitcoin’s market share rising to 43%.

Over the course of 24 hours, the open interest for Bitcoin futures has risen by 11%, primarily from the Binance and CME exchanges. Furthermore, GBTC has experienced a 3% increase today, a 20% increase over the past month, and a 54% increase since the start of the year.

Futures Open Interest | Source: Coinglass

Biden Assures Safety of Deposits at SVB and Signature Bank

President Biden sought to reassure citizens and the markets during his address to the nation on the morning of March 13. “Thanks to the swift actions taken by the US government over the past few days, Americans can be confident that the banking system is still safe. Deposits of everyone are still there if they need them,” he said.

Biden announced that deposits held at SVB and Signature Bank are safe and that customers can withdraw their deposits from March 13. He also added that taxpayers would not bear the brunt of the collapse of these banks.

This comes after the collapse of two major US banks, SVB and Signature Bank, which has sparked concerns about a potential widespread financial crisis. These are the second and third largest bank collapses in US history, respectively.

The US President affirmed that everyone who has deposited money in these banks “can rest assured that they are protected and have access to their money from today.” Biden also reiterated that citizens will not suffer any losses due to the bank collapses.

President Biden on Silicon Valley Bank and Signature Bank: “During the Obama-Biden administration, we put in place tough requirements on banks… Unfortunately, the last administration rolled back some of these requirements.” pic.twitter.com/nXo202vu9p

— Forbes (@Forbes) March 13, 2023

He also plans to urge the US Congress to strengthen banking regulations and hold those responsible for the bank failures accountable. “Investors in these banks will not be protected. They know that they have to accept risks. And when risks occur, they will lose money,” he said.

In response to the bank failures, US officials have announced a series of measures to restore confidence in the banking system. According to these measures, all deposits at SVB and Signature Bank will be guaranteed, including deposits that are not insured by the Federal Deposit Insurance Corporation (FDIC) regulation (those exceeding $250,000).

The Federal Reserve has also announced a lending program to ensure that banks have enough cash to meet the needs of depositors and borrowers.

The sudden surge in cryptocurrency prices may be due to investors’ lack of confidence in the traditional banking system and their search for alternative investment options. Cryptocurrencies offer a decentralized and secure alternative to traditional banking systems, which may explain their increasing popularity among investors.

However, it is worth noting that investing in cryptocurrencies carries significant risks due to their volatile and speculative nature. Investors should exercise caution and do their due diligence before investing in any cryptocurrency.

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