Bitcoin price soars over $24,000 as New York crypto-lender Signature Bank fails

The price of bitcoin, the world’s largest cryptocurrency, went above $24,000 on Monday after two banks failed last week and broader concerns about the U.S. banking system emerged.

The price jump occurred after Silicon Valley Bank and Signature Bank closed. The latter, a New York regional bank, was a major crypto-lending institution.

However, late Sunday, the U.S. Treasury Department, Federal Reserve and Federal Deposit Insurance Corp. announced it would backstop all Silicon Valley Bank and Signature Bank depositors — both insured and uninsured — and make funding available to other banks to prevent more failures.

Ethereum, the second-biggest cryptocurrency, was up to about $1,700, a 15% increase.

The overall crypto market was up about 14% on the day, according to TechCrunch.

The uncertainty led to a trading halt on several bank stocks on Monday following U.S. history’s second- and third-largest bank failures. Only Washington Mutual’s collapse in 2008 ahead of the great recession was bigger.

The $42 billion run on Silicon Valley Bank on Thursday led regulators to close the financial institution on Friday. Many crypto firms had significant assets in SVB, sending the crypto market into disarray until the Biden administration stepped in, with President Biden declaring the banking system “safe” on Monday.

“Americans can rest assured that our banking system is safe,” Biden said in a statement at the White House. “Your deposits are safe. Let me also assure you we will not stop at this; we’ll do whatever is needed.”

Biden added that he was calling on Congress and regulators to enhance rules for banks and financial institutions.

Despite bank stocks broadly dipping on Monday, the Dow Jones Industrial Average, Nasdaq and the S&P 500 were all up slightly midday following Biden’s statements.