Taking advantage of the recent crisis in the banking sector, bitcoin (BTC) had found a lot of momentum. However, the flagship crypto has been in a semblance of status quo for a few weeks, losing a few feathers in the process. Recent declarations on the improvement of the banking context have not impacted the prices of the asset.
Bitcoin falters amid weak banking system
The crypto analyst Plan B announced a few days ago the explosion of bitcoin prices by next year. For now, the trends for the flagship crypto are not dynamic. This, despite statements by President Joe Biden announcing government measures in the banking sector.
In effect, the american leader spoke during National Small Business Week. During this annual event, celebrated on May 1, the president acknowledged the crisis situation of the American banking system.
This context of crisis is the result of the collapse of the First Republic Bank. A fall, aggravated by the bankruptcy of major banking groups such as Silicon Valley Bank (SVB) and Signature Bank.
Faced with a loss of depositor confidence, the First Republic Bank suffered a bloodletting in its share price. The latter have lost nearly 50% of their valuation. Logical consequence of a massive bank run that cost the firm more than $72 billion in withdrawals.
In these circumstances, symptomatic of a beleaguered banking system, the American leader announced strong government actions. “The government’s measures will ensure the banking system is safe and sound, and that includes protecting small businesses across the country that need to pay the salaries of their employees.”said President Joe Biden.
In general, such statements are like an adrenaline rush on the crypto market, the prices of which are increasing significantly. This was not the case. The flagship crypto, for example, even fell by 4% in the past 24 hours. This decline is about 10% from the peaks reached last April. The flagship crypto is currently trading around $28,100.
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