Bitcoin (BTC) has bounced back after a recent drop triggered by the turmoil at Silicon Valley Bank and Silvergate, which caused concerns among investors. However, the market sentiment has improved after US regulators promised to aid customers in recovering their lost funds. As a result, the bitcoin price is now bullish.
Within the last 24 hours, BTC has surged by almost 10% in value, currently trading at the $22,500 level. This news is a relief for Bitcoin enthusiasts who have been waiting for a potential market recovery.
Restoring Public Trust in Banking System
US regulators have issued an official statement on the subject of Silicon Valley Bank and Silvergate in an effort to support the banking system and restore public trust in it. Treasury secretary Janet L. Yellen, Federal Reserve Board chair Jerome H. Powell, and FDIC chairman Martin J. Gruenberg stated that necessary measures should be taken to ensure that banks continue to protect deposits and provide access to credit for people and companies in a way that promotes sustainable economic growth.
Secretary Yellen has authorized the FDIC to conclude the resolution of Silicon Valley Bank in Santa Clara, California, in a manner that safeguards all depositors. This decision has been made based on the advice of the FDIC and Federal Reserve boards and after consulting with the President. From March 13, depositors can withdraw their money. The settlement of Silicon Valley Bank will not result in any government funds being lost.
Signature Bank in New York was also closed down by its state chartering body as authorities made a similar decision to protect the banking system from systemic risk. Similar to the Silicon Valley Bank settlement, depositors will be reimbursed fully, and taxpayers will not have to bear any losses. This move by US regulators has undoubtedly helped to restore confidence in the banking system, leading to a bullish outlook for Bitcoin and the wider market.