Alex Dovbnya
As the sudden collapse of Silicon Valley Bank sent shockwaves through the tech industry, Bitcoin’s price surged to an intraday high of $21,605 on the Bitstamp exchange
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The price of Bitcoin (BTC), the world’s largest cryptocurrency, surged to an intraday high of $21,605 on the Bitstamp exchange after reports that US officials appear ready to withdraw all deposits at Silicon Valley Bank protection.
The sudden collapse of the US startup hub has sparked panic in the tech industry, with blame-pointing from executives and investors. Crypto executives argued that centralized banking was to blame, but the tone changed when a major crypto company revealed it had scavenged billions of dollars in Silicon Valley Bank.
USD Coin, a stablecoin set to trade at $1, fell to 87 cents after cryptocurrency firm Circle Internet Financial said it had $3.3 billion on hold in the collapsed Silicon Valley Bank. The decline may trigger a sell-off from holders and put pressure on banks that serve the crypto industry.
According to a Sunday report by the Washington Post, US authorities are considering the possibility of protecting all uninsured deposits at the failed bank. The report cites three anonymous sources. This could prevent a broader contagion of the US financial system.
In an interview on Sunday, Treasury Secretary Janet Yellen said there would be no government bailout of the ailing bank following its tumultuous collapse. However, she also claimed that the ailing institution’s depositors would not be left alone with the music.
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.
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