United

Bitcoin

April

Collective

After First Republic Bank (FRC) shares dropped more than 50% on April 25, concerns over a potential impending bank failure caused the price of Bitcoin (BTC) to jump more than 3% in the previous day. 
The price of Bitcoin increased immediately after Fox News Business Reporter Charles Gasperino broke the news that bankers working with First Republic Bank anticipate the institution going into government receivership, claims the Head of Research at Australian crypto education platform Collective Shift. 
Receivership is a strategy that helps distressed businesses avoid bankruptcy while allowing creditors to recover money that may be at risk of default. The association between Bitcoin and the S&amp;P 500 may be decreasing, according to data from crypto analytics company Santiment, as the concept that Bitcoin is a safe haven during the banking crisis has once again gained traction. 
Early in March, First Republic started having problems, which led to 30 billion dollars being deposited in the struggling bank by 11 of the biggest American banks, including J.P. Morgan and Bank of America Corp. 
According to Bloomberg, U.S. authorities were considering setting up an emergency loan facility to help the bank address its “structural challenges” with its balance sheet, which were first mentioned on March 26.&nbsp; The bank’s deposits were “stabilizing,” according to unnamed U.S. officials at the time, and they said it was not in danger of experiencing “the kind of sudden, severe run” that prompted regulators to close down Silicon Valley Bank. This was said to be the case even though the First Republic was facing serious liquidity issues. 
These claims, sadly, turned out to be false. 
In its first-quarter earnings call on April 23, First Republic stated that total deposits had fallen by more than $100 billion and that it would be “pursuing strategic options” to immediately improve its financial situation. 
The earnings report stated that the troubled company plans to shrink its balance sheet and reduce expenses by slashing executive salaries, reducing office leases, and firing 20% to 25% of its workforce in Q2. The bank has not yet specified exactly what these strategic options entail. 
Financial institutions in the United States have suffered greatly as a result of the banking crisis this year. Following a run on deposits, Silvergate Bank announced on March 8 that it would be closed. 
Silicon Valley Investment Bank was shut down by the California Department of Financial Protection on March 10—two days later. U.S. Treasury Secretary Janet Yellen has reaffirmed that despite the unrest, the American financial industry is strong and stable. At the Financial Stability Oversight Council (FSOC) Council Meeting on April 21, Yellen said, “Our banking system is robust, with good capital and liquidity balances. 
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The post <a rel="nofollow" href="https://bitcoinworld.co.in/bitcoin-price-jumps-in-the-wake-of-first-republic-bank-crash/">Bitcoin Price Jumps in the Wake of First Republic Bank Crash</a> appeared first on <a rel="nofollow" href="https://bitcoinworld.co.in">BitcoinWorld</a>.

Bitcoin Price Jumps in the Wake of First Republic Bank Crash

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