Bitcoin surged by 6% minutes after US President Joe Biden assured that the American banking system is “safe.”The recent collapse of Silicon Valley Bank and Signature Bank caused severe panic, with some predicting a further contagion in the sector.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.”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:His appearance positively impacted the cryptocurrency market, with bitcoin crossing the $23,500 level.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.