U.S. President Joe Biden, speaking at the National Small Business Week on May 1, has admitted that the United States banking system is fragile. In a recent statement, the Head of State revealed that the government will institute measures to ensure its financial system remains “sound and safe.”
Despite Biden’s comments, Bitcoin and most cryptocurrencies remain lower. Bitcoin is down 4% in the last 24 hours and roughly 10% from April 2023 highs, trading at $28,100.
Banks Collapsing In The United States, President Biden’s Assurance
The president’s comments follow the collapse of the First Republic Bank, the third major bank to collapse in less than two months.
The bank’s failure saw the stock’s price crash in late April 2023 as Bitcoin prices powered higher, charting as high as $30,000 on April 26. At this time, the cryptocurrency recovered after worrying losses from mid-April 2023.
As of April 26, First Republic Bank’s stock fell by as much as 50% as its trading was halted several times at the New York Stock Exchange.
The San Francisco-based bank revealed that it was hemorrhaging deposits, losing over $72 billion as clients moved their funds elsewhere in Q1 2023.
The crisis and the bank run at First Republic Bank were further amplified as two banks, the Silicon Valley Bank (SVB) and Signature Bank, came under fire around the same time cracks began emerging in the United States banking system.
SVB saw a deluge in withdrawal requests in
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Author: Dalmas Ngetich
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