Banking Crisis Redux: Bitcoin Priced In First Republic Bank Shares Rockets Higher
Bitcoin rallied earlier this year on the back of some of the biggest bank runs in decades. The banking sector crisis could be making a comeback, according to a second-leg up in BTC priced in First Republic Bank shares. T...
Archive context
Older archive item. Useful for background and entity history, but not a fresh market-moving signal.
Bitcoin rallied earlier this year on the back of some of the biggest bank runs in decades. The banking sector crisis could be making a comeback, according to a second-leg up in BTC priced in First Republic Bank shares. Take a look below.
Bitcoin Priced In Banks Gets Another Leg UpSeveral banks struggled to meet a sudden influx of depositors seeking to withdraw funds this past March. The crisis in the banking industry kickstarted a massive surge in Bitcoin price.
The top cryptocurrency soared relative to USD, but when priced in bank shares of the afflicted banks, the charts were simply breathtaking to see. Now, as shares of First Republic Bank plummet another 40% and more than $100 million in deposits flee the bank, BTC priced in bank shares is making another leg up.
Priced in bank shares, BTC never made a second high in 2021. Later in March of this year, there is a massive breakout through downtrend resistance. Another leg up here could indicate that the issues across the banking industry aren’t over, and could even be escalating.
Why First Republic Bank Stock Shares Are PlummetingFirst Republic Bank share price falling is the result of a negative first quarter earnings report. The bank revealed that across Q1, more than $100 million in deposits sought refuge elsewhere.
First Republic CEO Mike Roffler said the bank would be”pursuing strategic options” and “taking steps to meaningfully reduce our expenses to align with our focus on reducing the size of the balance sheet.” The steps include laying off up to a quarter of the workforce, slashing executive level salaries, and more.
Typically, companies will hold a Q&A session with analysts, but First Republic ended the call, bringing back painful memories of the 2008 financial crisis, Reuters reports.
Bitcoin skyrocketing in bank shares isn’t due to BTC being in an unstoppable bull run, but due to extreme weakness in traditional financial institutions. The further shares fall, the higher the top cryptocurrency climbs.
Although this doesn’t directly related to a corresponding increase in USD value, the last time there were a string of bank runs, Bitcoin rallied by more than 40% in several days. What happens this time?
Bitcoin is making another leg up against #FirstRepublicBank pic.twitter.com/XNaaEUL4Aq
— Tony "The Bull" (@tonythebullBTC) April 25, 2023
Why this matters
This bitcoin story adds another data point to the current market tape and is useful when read alongside nearby source coverage.
Original source
Read on NewsBTCRelated market context
HKMA Pilot Lets Banks Settle Tokenized Deposits Nights and Weekends in Central Bank Money
Banks in Hong Kong can now settle tokenized deposit transactions with one another 24 hours a day, seven days a week, using tokeniz...
Bank of Korea Weighs How Its Banks Would Weather a Crypto Exchange Hack
The Bank of Korea has asked 31 South Korean financial firms how they would be affected if the crypto exchange with the No. 1 marke...
LIVE – Bitcoin Price Crashes as Iran Strike and Crypto Hack Spree Shake Markets
Bitcoin price fell sharply as renewed Iran conflict fears collided with a wave of crypto hacks, giving us a fresh market shock. Re...
Microsoft Bearish On Ripple? Copilot AI Predicts a Huge XRP Crash Looms
Is Microsoft bearish on Ripple? Its AI bot, Copilot AI, predicts that something potentially severe could be approaching for XRP by...
Polygon brings US banking access to Solana’s $15 billion stablecoin market
Polygon’s OMS expansion lets eligible foreign businesses connect Solana stablecoins to bank rails after verification, within early...
Sam Altman ChatGPT AI Predicts a Huge Bitcoin Crash: Can BTC Really Go This Low?
Something potentially severe could be approaching for Bitcoin by January 1, 2027. Sam Altman’s ChatGPT AI predicts that in the eve...