Following Joe Biden’s speech, the world’s most capitalised cryptocurrency, Bitcoin jumped above the $24,000 mark in minutes.
In a widely televised speech, the U.S. president assured that the American banking system is “safe.”
Immediately after the news, Bitcoin surged by 6%, adding to the gain it has already recorded. Investors King earlier reported that digital assets across the cryptocurrency market are trading in green following Binance’s announcement that it plans to convert $1 billion to BTC, BNB and Ethereum.
After briefly touching $24,500, the flagship cryptocurrency exchanged hands at $24,170 as of the time of writing this report. Additionally, many of the alternate coins including Ether (ETH), Binance Coin (BNB), and Cardano (ADA), also responded positively to the announcement.
It would be recalled that the recent collapse of Silicon Valley Bank (SVB) and Signature Bank (SB) has caused severe panic, with some predicting a further decline in the banking sector.
In the highly anticipated speech, the President of the United States, Joe Biden, stated that Americans should have confidence in the local banking system, describing it as “safe”. He also assured that customer deposits remain available.
The United States President however noted that taxpayer funds won’t be used to bail out Silicon Valley Bank and Signature bank. He clarified that the money would come from the fees that banks pay into the Deposit Insurance Fund.
“Every American should feel confident that their deposits will be there, if and when they need them,” Biden said.
Meanwhile, the upward rally which has seen most of the cryptocurrencies recording double-digit gains has renewed interest in the once-abandoned digital currencies.
Similarly, the total cryptocurrency market capitalization has climbed back to $1.09 trillion, gaining 12% in the last 24 hours.
Experts have posited that once bitcoin breaks the $25,000 a coin resistance level, the digital currency will set a new mid-term record year.
However, a senior analyst at Investors King Ltd, Samed Olukoya described the recent surge in cryptocurrencies value as artificial, largely instigated by $1 billion expected to be injected into the space by Binance. To sustain the bullish run, institutional investors need to start investing in the space again.
“$1 billion additional liquidity in a market with almost $1 trillion capitalisation won’t do much without sustenance.”