BTC surpassed $23,500 shortly after President Joe Biden said the US banking system is safe.
Bitcoin surged by 6% minutes after US President Joe Biden assured that the American banking system is “safe.”
Many alternative coins, including Ether (ETH), Binance Coin (BNB), and Cardano (ADA), also headed north.
The recent collapse of Silicon Valley Bank and Signature Bank caused severe panic, with some predicting a further contagion in the sector.
In a highly anticipated speech, the President of the United States – Joe Biden – stated that Americans should have confidence in the local banking system, describing it as “safe.”
He also assured that customer deposits remain available, meaning that small businesses “can breathe easier knowing they’ll be able to pay their workers and pay their bills.”
“Every American should feel confident that their deposits will be there if and when they need them.”
Biden touched upon the crisis with the former giant – Silicon Valley Bank, outlining that “no losses will be borne by the taxpayers.” Instead, the money will come from fees that banks distribute into the Deposit Insurance Fund.
However, investors in the failed institution will lose their funds because “that’s how capitalism works,” he explained:
“They knowingly took a risk, and when the risk didn’t pay off, investors lose their money.”
His appearance positively impacted the cryptocurrency market, with bitcoin crossing the $23,500 level.
Source: TradingView
ETH surged 4%, reaching $1,650, while BNB, ADA, MATIC, DOGE, and other altcoins also marked some serious gains.
The total cryptocurrency market capitalization climbed to $1.09 trillion, a nearly 12% increase compared to yesterday’s figures.
Dimitar got interested in cryptocurrencies back in 2018 amid the prolonged bear market. His biggest passion in the field is Bitcoin and he was fascinated with its journey. With a flair for producing high-quality content, he started covering the cryptocurrency space in late 2018. His hobby is football.
