BTC Price Surges
The price of BTC surges as the First Republic Bank heads into a downward spiral of almost 50%.
Price chart for BTC from CoinMarketCap.com taken at 7:19pm, 4/25/23.
Bitcoin price benefitted from the First Republic Bank’s fall as the bank’s stock, FRC, crashed by nearly 50% over the last 24 hours bringing its total downfall since the beginning of March to 93.32%. At the time of closing, FRC was trading at $8.10.
However, the rest of the crypto market is not observing any significant increase, suggesting the likelihood of the alt season is diminishing. Bitcoin’s dominance following the price rise increased by 0.7% to 47.73%, marking a 10-day high.
First Republic Bank
Shares of First Republic tumbled 50% in a matter of hours on Tuesday as the troubled bank revealed a massive flight of customer capital.
The bank says customers pulled $100 billion worth of deposits out of the bank in March – a number that surprised analysts and fueled fresh concerns about the health of the US banking system as a whole.
Fox Business senior correspondent Charles Gasparino says bankers working with First Republic now expect a total federal takeover of the troubled institution.
“Bankers working with First Republic Bank say they expect eventual government receivership for the ailing bank after it exhausts private sector solutions such as asset sales and finding a buyer, both of which appear difficult.
Officials at the big banks believed the Feds were poised last week to take over FRC just before its earnings announcement crushed shares.”
The bank says it will fire 20 to 25% of employees as part of an effort to shrink its balance sheet and stay afloat.
First Republic stock is now down 93% since the start of 2023, and its Tuesday selloff triggered a downward move in the regional banking sector as a whole.
About a month ago, Fox News reported First Republic may be headed for a sale. The report named Morgan Stanley and PNC as potential buyers.
If First Republic outright fails with no buyout and no additional government assistance, the FDIC will insure individual customer accounts up to $250,000.
Generated Image: Midjourney
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