Regional Bank Stock Crash Favors Bitcoin Surge

According to the latest reports, it seems that Bitcoin’s surge is triggered by one of the regional Bank stock crashes that has impacted the country more than people realize. Check out the latest reports about this below.

Bitcoin (BTC) is hovering below the $29,000 level as regional bank stocks in the US crash and the Federal Reserve announces new rate hikes.

As noted by the online publication the Daily Hodl, the new data from the KBW Nasdaq Bank Index, which is designed to keep track of the performance of leading banks in the US, reveals that bank stocks have sharply declined since February. More than that, they have dropped to a point they haven’t been in since late 2020.

According to Charlie Bilello, the chief market strategist for financial services company Creative Planning, the issues will not be going away as many regional bank stocks have plummeted this week.

“The regional bank problems aren’t going away. This week…
PacWest (PACW): -67%
HomeStreet (HMST): -48%
First Horizon (FHN): -47%
Metropolitan Bank (MCB): -40%
First Foundation (FFWM): -35%
Western Alliance (WAL): -34%
Comerica (CMA): -25%
WesBanco (WSBC): -25%
Zions (ZION): -25%”

Mor than that, it is also important to note the fact that The Federal Reserve issued a new press release yesterday announcing further interest rate hikes in its continued battle against inflation.

“The US banking system is sound and resilient. Tighter credit conditions for households and businesses are likely to weigh on economic activity, hiring, and inflation. The extent of these effects remains uncertain. The Committee remains highly attentive to inflation risks.”

The same notes revealed the following:

“The Committee seeks to achieve maximum employment and inflation at the rate of 2% over the longer run. In support of these goals, the Committee decided to raise the target range for the federal funds rate to 5 to 5.25%.”

Stay tuned for more news from the crypto space.