Bitcoin Rises as First Republic Bank Worries Rise

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First Republic Bank shares fell 50% after reporting a dramatic drop in deposits. Photo: Spencer Platt/Getty

The price of bitcoin jumped 4% today after the crisis hit shares of First Republic Bank which fell nearly 50% as investors questioned its future.

The fall in First Republic Bank shares came a day after the US bank said its customers withdrew more than $100 billion ($80.25 billion) from their accounts amid last month’s bank run.

After the collapse of Silicon Valley Bank (SIVB) in early March, and amid concerns about other US mid-tier lenders, the entire cryptocurrency market capitalization rose, with bitcoin surpassing 30,000 $ two weeks ago, marking the first time the digital asset had reached this level. level in 10 months.

However, since last week, bitcoin price has fallen 9% after breaking the psychologically important $30,000 mark, while ether price is down 14% after peaking above 2,100. $ in mid-April.

Read more: Live crypto prices

Support or resistance for bitcoin and ether often centers around large integers and today the price of both digital assets rose.

Bitcoin (BTC-USD) is heading back towards the $30,000 mark, rising 4% in the past 24 hours to $28,400, and Ether (ETH-USD) is up 2.5% to hit 1 $862.

According to Coingecko, the global cryptocurrency market capitalization today stands at $1.23 billion, up 2.5% in the last 24 hours.

Bitcoin hitting $30,000 aligned with the upper range of its Bollinger Bands, which plot the 20-day moving average of an asset and calculate two standard deviations above and below the average.

Read more: Philip Hammond warns of ‘real risk’ to London financial services from EU crypto bill

Over the past 24 hours, the majority of leveraged trades that have liquidated in the crypto market have been short positions as prices rose after days of declines.

According to data from Coinglass, in the past 24 hours, 25,602 traders were liquidated, 75% of whom held short positions.

Trouble is brewing among US mid-tier lenders

Shares of the First Republic (FRC) have fallen nearly 50% in the past 24 hours as investors questioned its future after clients withdrew more than $100 billion amid panic bank, making the bank one of the most exposed to the risk of bankruptcy.

The story continues

The bank is now pursuing strategic options, such as cutting costs by laying off 20-25% of its workforce.

The collapse of Silicon Valley Bank and New York’s Signature Bank (SBNY), as well as the turmoil at Credit Suisse (CS), raised fears of an impending crisis in the banking sector.

Read more: Bitcoin could hit $100,000 by 2024, according to Standard Chartered, even if prices crash

Monetary policy decisions by the US Federal Reserve over the past year have had an impact on bond values. As interest rates rise, the market value of bonds already held by lenders, such as Silicon Valley Bank, has declined.

As frightened investors withdraw their money from crisis-hit banks, these lenders have been forced to sell their old bonds at a loss in order to fund customer repayments.

Watch: Philip Hammond warns of ‘real risk’ to London financial services from EU crypto bill | The Crypto Mile

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