With gains of more than 70 percent so far this year, bitcoin has outpaced other major assets and has been trading near its highest in nine months.
Yellen's remarks come after a series of troubling bank developments this month.
The deal follows the collapse of two large US banks last week that spurred a frantic, broad response from the US government to prevent further panic.
Shares of First Republic Bank and Credit Suisse dive back deep in the red and stock prices of other major banks also fall, with JP Morgan, Citigroup and Bank of America down at least three percent.
Biggest banks — such as JPMorgan Chase, Bank of America, Citigroup and Wells Fargo — agree to prevent First Republic from collapsing and becoming the third American bank to fail in less than a week.
The fall of Silicon Valley Bank, a titan for start-up companies, could trigger a chain reaction in the banking sector and also lead to extinction of other businesses.
Plea of Tim Mayopoulos, head of Silicon Valley Bridge Bank, comes as large banks reportedly see an influx of funds after SVB's collapse last week, the largest US bank failure since 2008.
With echoes of 2008, the collapse and bailout of Silicon Valley Bank shows little has changed for reckless financial actors. How long can it go on?
The turmoil in the financial sector of the world's biggest economy has raised fears of a rerun of the 2008 global crisis.
The declining value of the US dollar aided higher oil prices by making trade more appealing for oil buyers using other currencies.
US Treasury official says the firms are not being bailed out and Silicon Valley Bank equity and bondholders would be wiped out, but depositors are being protected.
Cryptocurrency USDC fallsto its lowest level ever, dropping to 87 cents before recovering to around 94 cents following the failure of Silicon Valley Bank.
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