Bitcoin Jumps as First Republic Bank Crashes
BITmarkets Team
Apr 30, 2023
The price of the father of all cryptocurrencies, Bitcoin (BTC) has spiked more than 3% throughout the past 24 hours as First Republic Bank (FRC) shares plummeted more than 50% on April 25, which sparked fears of another potential imminent bank failure.
As per the statements of head of research at Australian crypto education platform Collective Shift, Bitcoin rallied following a Fox News segment which highlighted that bankers closely connected with the hammered First Republic Bank expect the corporation to go into the government’s receivership. This essentially means that troubled firms are assisted to avoid bankruptcy, and creditors will be enabled to recover funds which are experiencing a potential default.
Data from research-centric Santiment suggests that the correlation between Bitcoin and the renowned S&P 500 index appears to be diminishing; the status of Bitcoin as a safe haven is becoming more widespread as the banking crisis continues to worsen.
Liquidity concerns have sent FRC to oblivion and fears of contagion to the wider banking and finance sectors have recently swayed investors away from traditional financial institutions and towards the seemingly-safe Bitcoin.
Sources:
https://cointelegraph.com/news/bitcoin-price-jumps-in-the-wake-of-first-republic-bank-crash
