In early Monday morning trading, the price of bitcoin increased 10% as the cryptocurrency market as a whole grew in response to Silicon Valley Bank’s failure.
On Monday, Bitcoin hit $22,560.20, marking its highest level in ten days. Ether also had a 10% increase.
According to CNBC, a rise of about $70 billion helped the cryptocurrency market as a whole surpass $1 trillion.
The SVB depositors’ funds are being guaranteed by President Biden’s administration as the largest bank collapse since the 2008 financial crisis occurs, which coincides with the cryptocurrency increase.
Following a horrific bank run that caused the company to go under, the Biden administration assumed control of SVB on Friday.
The band from Santa Clara, California, broke up last week and is now in the hands of federal authorities. Prior to the bank run that caused SVB’s demise, the bank was ranked as the 16th largest in the United States.
According to Y Combinator CEO Garry Tan, the bank’s failure may act as “an extinction-level event for startups” because anxious depositors raced to withdraw their money out of concern for the institution’s well-being.
Depositors of the SVB were promised by the Biden administration that they would have free access to all of their money on Sunday.
“Today we are taking decisive actions to protect the U.S. economy by strengthening public confidence in our banking system,” the Treasury Department, Federal Reserve, and the Federal Deposit Insurance Corporation (FDIC) said in a joint statement Sunday. “This step will ensure that the U.S. banking system continues to perform its vital roles of protecting deposits and providing access to credit to households and businesses in a manner that promotes strong and sustainable economic growth.”
