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Bitcoin rallies amid US watchdogs’ intervention in bank crisis

source-logo  crypto.news 13 March 2023 05:00, UTC

Bitcoin (BTC) is recovering after a plunge amid the troubles at Silicon Valley Bank and Silvergate that caused investor panic. As US regulators announced support to help customers recover lost funds, the bitcoin price is bullish.

Bitcoin enthusiasts could start their week full of smiles as the digital gold is on for a comeback. It has recorded an increase of close to 10% in valuation within the last 24 hours. BTC is currently trading at the $22,500 level.

Bitcoin price 24-hours | Source: CoinMarketCap

US regulators to protect SVB and Silvergate investors

To defend the US economy by bolstering public trust in the banking system, Treasury secretary Janet L. Yellen, Federal Reserve Board chair Jerome H. Powell, and FDIC chairman Martin J. Gruenberg issued an official statement on the topic of Silicon Valley Bank and Silvergate.

@federalreserve @USTreasury @FDICgov issue statement on actions to protect the U.S. economy by strengthening public confidence in our banking system, ensuring depositors' savings remain safe: https://t.co/YISeTdFPrO

— Federal Reserve (@federalreserve) March 12, 2023

Yellen believes that for the banking system to continue protecting deposits and providing access to credit for people and companies in a way that promotes robust and sustainable economic development, the regulators must take the necessary steps.

Secretary Yellen authorized steps that will enable the FDIC to conclude its resolution of Silicon Valley Bank in Santa Clara, California, in a manner that completely protects all depositors, per the advice of the FDIC and Federal Reserve boards and after conferring with the President. From March 13, all depositors may withdraw their money. No government funds will be lost in the settlement of Silicon Valley Bank.

Signature Bank and New York were also shuttered today by its state chartering body as authorities issued a similar systemic risk exception for the bank. Similar to the settlement of Silicon Valley Bank, all depositors will be reimbursed entirely, and taxpayers will not be responsible for any losses.

We are establishing a bridge bank to protect all depositors of Signature Bank, New York, and to preserve the value of the institution’s assets and operations to sell at a later date.

Read more ➡️ https://t.co/6hxjJ6hHbT pic.twitter.com/VWPw8syj2q

— FDIC (@FDICgov) March 12, 2023