As the sudden collapse of Silicon Valley Bank sends shockwaves through the tech industry, the price of Bitcoin soared to an intraday high of $21,605 on the Bitstamp exchange
The price of Bitcoin (BTC), the world’s largest cryptocurrency, hit an intraday high of $21,605 on the Bitstamp exchange amid reports that US officials appear ready to protect all Silicon Valley deposits Bank.
The sudden collapse of the benchmark bank for US startups has sent panic through the tech industry, pointing the finger at executives and investors. Crypto executives argued that centralized banking was to blame, but when a major crypto firm revealed it had billions of dollars trapped in Silicon Valley Bank, the tone changed.
USD Coin, a stablecoin, which is believed to be trading at $1, fell to 87 cents after cryptocurrency firm Circle Internet Financial said it had $3.3 billion locked up in Silicon Valley Bank in bankruptcy. The drop could trigger a wave of selling among holders and put pressure on banks that serve the crypto industry.
According Sunday report by the Washington Post, the American authorities are considering the possibility of protecting all the uninsured deposits of the bankrupt bank. The report cites three unnamed sources. This would prevent wider contagion in the US financial system.
In a Sunday interview, Treasury Secretary Janet Yellen said there would be no government bailout for the struggling bank after its tumultuous collapse. Yet she also maintained that depositors at the beleaguered institution would not be left to face the music alone.
It remains to be seen how Bitcoin will fare on Monday, which is expected to be a tumultuous day for the US stock market amid the SVB drama.