Bitcoin price jumps in the wake of First Republic Bank price crash
2 min read
The price of Bitcoin (BTC) spiked more than 3% in the last 24 hours as fears were sparked of another possible imminent bank failure as First Republic Bank (FRC) shares closed down more than 50% on April 25.
According to the head of research at Australian crypto education platform Collective Shift, the price of Bitcoin rallied immediately following Fox News Business reporter Charles Gasperino breaking the news that bankers working with First Republic Bank expect the institution to go into government receivership.
#Bitcoin $BTC is up 2.4% in the last 90 minutes after @CGasparino breaks the news that bankers working with First Republic Bank $FRB “expect eventual govt receivership.”
Price was $27,500 at the time of the tweet and is now $28,150. pic.twitter.com/aSjzFXiip6
— Matt Willemsen (@matt_willemsen) April 25, 2023
Receivership is a tactic allowing creditors to recover funds that are experiencing a potential default and assists troubled firms in avoiding bankruptcy.
Data from crypto analytics firm Santiment suggested the correlation between Bitcoin and the S&P 500 may be dwindling as the narrative that Bitcoin is a safe haven amid the banking crisis began to once again gather steam.
Just minutes after US stock markets winded down their rough day, #crypto has had signs of life. With $BTC pushing for $28.5k & $ETH closing in on $1,900, these surges without reliance on the #SP500 are ideal for the market’s independent sustainability. https://t.co/0XeNVf9Vaz pic.twitter.com/KeJ1408UiN
— Santiment (@santimentfeed) April 25, 2023
First Republic began experiencing issues in early March, which led to 11 of the largest banking institutions in the United States, including J.P. Morgan and Bank of America Corp.,
The banking crisis has taken a heavy toll on financial institutions in the U.S. over the course of this year. On March 8, Silvergate Bank announced that it would be closing its doors after experiencing a run on deposits.
Two days later, Silicon Valley Investment Bank was shut down by the California Department of Financial Protection.
Despite the turmoil, U.S. Treasury Secretary Janet Yellen has reiterated that the American banking sector remains robust and stable. “Our banking system remains sound, with strong capital and liquidity positions,” Yellen told the Financial Stability Oversight Council meeting on April 21.
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