Bitcoin Price Shoots to $29,000 Amid Crisis At America’s First Republic Bank
The American banking system is not completely out of the woods yet. After a banking crisis faced by Silicon Valley Bank (SVB) and Signature Bank last month, another major US bank, the First Republic Bank, is facing a crisis-like situation.
During its earnings reports earlier on Monday, first Republic Bank reported more than $100 billion in withdrawals from deposits. By the end of 2022, the bank’s deposits stood at $176 billion. This shows it lost more than 50% of its deposits just within three months of 2023.
Interestingly, the news provided the much required boost for Bitcoin and the broader cryptocurrency market. The world’s largest cryptocurrency Bitcoin is currently trading 5.70% up at a price of $28,960 and a market cap of $560 billion. The Bitcoin price surge over the last 24 hours has added more than $30 billion to investors’ wealth.
The Bitcoin price recovery comes as a major surprise for investors after two weeks of downward selling pressure. The BTC price has tanked all the way down to $27,000 last week and this healthy recovery provides a much needed breather for investors.
With its recent price rally, Bitcoin is clearly showing signs of decoupling from the traditional market. While the S&P500 ended 2% in the red on Tuesday, Bitcoin made a solid move to the north. Thus, Bitcoin is clearly breaking up on its correlation with the traditional market.
Financial cracks at the First Republic Bank started to appear last month when some of the top lending institutions had to jump in to extend help. Also, the US authorities were looking at creating emergency lending facility to assist the bank in shoring up the “structural challenges” in its balance sheet.
The banking crisis unfolding in the US has really taken a toll on the state of the US financial markets. However, Bitcoin and the broader cryptocurrency market has shown greater resilience in the matter.
Along with Bitcoin, altcoins have also extended the rally on Tuesday. The Ethereum (ETH) price is up by 5.70% in the last 24 hours and is currently trading at $1,930 with a market cap of $232 billion. Other popular altcoins such as Cardano (ADA), Dogecoin (DOGE), Polygon (MATIC), and Solana (SOL) have gained around 6-8% in the last 24 hours.