Bitcoin Price Soars On Bitstamp Crypto Exchange

Bitcoin prices rose despite being shaken by the collapse of a number of crypto-friendly banks. (Photo; Doc. Pixabay)

JAKARTA - The price of Bitcoin (BTC) has again recorded an intraday record by surging to a highest level of US$21,605 (Rp332 million) on the Bitstamp exchange. This increase came after US officials were reportedly ready to protect all deposits in Silicon Valley Bank. The bank, which is the main goal of US startups, recently experienced a sudden collapse that caused panic among technology industry players.

Crypto executives argue that centralized banking is the cause, but when a large crypto company reveals that it has billions of dollars trapped in Silicon Valley Bank, the tone changes. The decline in USD Coin prices, a stablecoin, from a price of 1 USD to 87 cents also triggers a wave of sales among its holders and puts pressure on banks serving the crypto industry.

According to a report Sunday, March 12 by The Washington Post, US authorities are considering the possibility to protect all unintegrated deposits in the failed bank. This is done to prevent wider transmission in the US financial system.

Although Finance Minister Janet Yellen stated that there would be no bailout from the government for the troubled bank after her volatile collapse, she stressed that the deposits from the trapped institution would not be left to face this issue alone. On Monday, March 13, Bitcoin's performance is expected to be volatile amid the SVB drama and is also influenced by the unstable condition of the US stock market.

Although the price of Bitcoin has seen a significant increase amid reports of Silicon Valley Bank, the bank's development remains in the public spotlight. United States government officials are considering options to protect all unintegrated deposits in the troubled bank to prevent wider spread in the US financial system.

However, the US Treasury Secretary, Janet Yellen, ensured that depositors would not be left to face this issue alone. However, this event could trigger pressure on banks serving the crypto industry and cause a wave of sales among its holders.