Bitcoin Price Explodes As Biden Admin Tries To Stop Contagion In US Financial System

According to the latest reports, it seems that the Biden administration is doing its best to stop the contagion in the US Financial System. Check out the latest reports about all this below.

The price of Bitcoin (BTC) is soaring as the Biden Administration races to prevent the collapse of Silicon Valley Bank from triggering a mass exodus at regional banks across the U.S.

“The U.S. Treasury Department is conducting a series of emergency meetings to determine whether it should ensure all depositors at SVB will be made whole after the bank’s sudden collapse,” reports the Washington Post.

The outlet cites people with knowledge of the matter who are speaking on internal deliberations at the Treasury Department, Federal Reserve and FDIC.

“Federal authorities are seriously considering safeguarding all uninsured deposits at Silicon Valley Bank, weighing an extraordinary intervention to prevent what they fear would be a panic in the U.S. financial system.”

It’s been just revealed the fact that an abrupt, widespread realization that American bank accounts, including corporate accounts, are only insured up to $250,000 by the FDIC has coincided with a sharp reversal in the price of BTC.

CNBC notes the fact that The Santa Clara, California-based bank has historically paid employee bonuses on the second Friday of March, said the people, who declined to be identified, speaking about the awards.

The payments were for work done in 2022 and had been in process days before the bank’s collapse, the sources said.

“This year, bonus day happened to fall on SVB’s final day of independence. The institution, in the throes of a bank run triggered by panicked venture capital investors and startup founders, was seized by the Federal Deposit Insurance Corporation (FDIC) around midday Friday,” CNBC said.

Stay tuned for more relevant news.