Bitcoin price soars amid a banner day for cryptocurrency

The price of Bitcoin, the world’s largest cryptocurrency, went above $24,000 on Monday after two banks failed last week and broader concerns about the U.S. banking system emerged.

The price jump occurred after Silicon Valley Bank and Signature Bank closed. The latter, a New York regional bank, was a major cryptolending institution.

However, late Sunday, the Treasury Department, the Federal Reserve and the Federal Deposit Insurance Corp. announced it would backstop all Silicon Valley Bank and Signature Bank depositors — both insured and uninsured — and make funding available to other banks to prevent more failures.

Ethereum, the second-biggest cryptocurrency, was up to about $1,700, a 15% increase.

The overall cryptomarket was up about 14% on the day, according to TechCrunch.

The uncertainty led to a trading halt on several bank stocks Monday following U.S. history’s second- and third-largest bank failures. Only Washington Mutual’s collapse in 2008 ahead of the Great Recession was bigger.

The $42 billion run on Silicon Valley Bank on Thursday led regulators to close the financial institution Friday. Many cryptofirms had significant assets in Silicon Valley, sending the cryptomarket into disarray until the Biden administration stepped in, with President Biden declaring the banking system “safe” on Monday.

“Americans can rest assured that our banking system is safe,” Biden said in a statement at the White House. “Your deposits are safe. Let me also assure you we will not stop at this; we’ll do whatever is needed.”

Biden added that he was calling on Congress and regulators to enhance rules for banks and financial institutions.

Despite bank stocks broadly dipping Monday, the Dow Jones industrial average, Nasdaq and the S&P 500 were all up slightly midday following Biden’s statements.