Bitcoin price prepares a rally to $35,000 as another wave of the banking crisis will put additional pressure on the U.S. central bank Federal Reserve balance sheet. The U.S. government is likely to take First Republic Bank under the FDIC receivership this weekend, as per a report by Wall Street Journal on April 29.
First Republic Bank is not the only bank at risk, 4–5 banks are currently facing bank deposit withdrawals in billions. Fed needs to print more money for rescuing cash-strapped banks on the brink of collapse.
FDIC Receivership of First Republic Bank Likely This Weekend
According to the Wall Street Journal, the FDIC receivership of First Republic Bank is to likely come this weekend. Moreover, banks including JPMorgan Chase & Co and PNC Financial Services are already preparing to buy First Republic Bank following the closure by the government.
First Republic’s shares have been in free-fall since Monday, plunging over 75% to $3.51 at market close on Friday. During the after hours trading, FRC shares fell 33% to $2.33.
Some Wall Street experts revealed that First Republic Bank is not the last to collapse as government agencies looking at four to five banks could fail in the coming months. Big banks including JPMorgan and PNC tried to prevent problems at First Republic Bank in March by providing a $30 billion deposit. However, the bank has failed to prevent continued withdrawals of deposits.
UPDATE: Re: bank failures going forward, lots of chatter.
**sources inside gov agencies: “don’t think that First Republic won’t be the last, four maybe five more to come.”
**contrary to media reports, $FRC issues aren’t unique.
— Andrew (@AP_Abacus) April 29, 2023
Also Read: Crypto Expert Says Banking Crisis “Just Starting”; Here’s Why
Bitcoin Price to Hit $30,000
The Fed has already printed almost $400 billion to save banks from collapse. Despite the banking crisis, Fed raised interest rates by another 25 bps to 4.75%-5% in March. The Fed will announce its next rate hike decision on May 3, while Wall Street looks for a pause by the central bank.
This second wave of the banking crisis will force the Fed to print more money, causing Bitcoin prices to rally towards $35,000.
BTC price is trading sideways in the last 24 hours, with the price currently trading near $29,500. The 24-hour low and high are $28,929 and $29,526, respectively. Furthermore, the trading volume has decreased by 31% in the last 24 hours as traders await the Fed’s monetary policy decision.
Also Read: US Loses Crypto Market Share In Q1 2023 Amid US SEC-Led Crackdown: Report
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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