Shortly after US President Joe Biden declared that the US financial system is “safe,” the bitcoin price increased by 6%.
Many alternative coins, such as Cardano (ADA), Binance Coin (BNB), and Ether (ETH), also moved north.
There was a great deal of worry with the recent failure of Silicon Valley Bank and Signature Bank, and some people even predicted additional economic contagion.
The President of the United States, Joe Biden, said that Citizens should have faith in their local banking system because it is “secure” in a much-anticipated address.
“Every Citizen should have faith that their savings will be available if and when they are needed”.
In response to the crisis involving the former industry heavyweight Silicon Valley Bank, Biden stated that “no damages will be incurred by the taxpayers.” The funds will instead come from fees that banks pay to the Deposit Insurance Fund.
He clarified that investors in the collapsed institution would nevertheless lose their money because “that’s how capitalism works”: “They consciously accepted a risk, and when the gamble didn’t pay off, investors lose their money.”
ETH increased 4% to reach $1,650, and other cryptocurrencies like BNB, ADA, MATIC, DOGE, and others also made significant gains.
The entire market value of cryptocurrencies increased to $1.09 trillion, up nearly 12% from yesterday’s estimates.
The cryptocurrency market responded favorably to his appearance, with bitcoin rising above the $23,500 mark.