Biden Expresses Concerns Over US Banking System – Bitcoin Prices Drop
During National Small Business Week on May 1, President Biden expressed concern over the fragility of the US banking system and reassured depositors that the government will take measures to keep the financial system stable.
However, despite Biden’s statement, Bitcoin and most cryptocurrencies have experienced a decline, with Bitcoin dropping by 4% and about 10% from its peak in April 2023. BTC managed to recover somewhat currently trading at $28,650.
The recent collapse of First Republic Bank, the third major bank to fail within two months, also contributed to the instability of the US banking system.
In Q1 2023 alone, the bank lost over $72 billion in deposits as clients moved their funds elsewhere.
This collapse led to the stock’s price plunging in late April 2023, while Bitcoin prices surged to $30,000. Furthermore, other banks such as Silicon Valley Bank and Signature Bank have also faced criticism during this period.
READ MORE: FOMC Meeting Anticipation: Interest Rates, Banking Crisis, and Crypto Markets
In response to the current state of the US banking system, Bitcoin prices have not shown a significant reaction. However, any disruption to the traditional financial system could potentially support long-term growth in the cryptocurrency market.
Biden has promised to safeguard depositors, including small businesses that require payroll processing for their workers, and reiterated that all depositors would be protected while shareholders may face losses.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
