Bitcoin Surges to $29,000 as First Republic Bank’s Stock Tubmles
Shares of First Republic Bank fell more than 22% in aftermarket trading on the 24th, despite the company taking steps to strengthen its balance sheet and cut its workforce after its deposits fell in the first quarter amid the U.S. banking crisis.
According to its April 24 earnings statement, the bank’s deposits fell to about $104.5 billion (down 35.5%) in the first quarter of this year, compared with $176 billion in the fourth quarter of 2022. This decline was realized even after the First Republic received a $30 billion bailout from Bank of America, Citigroup, JPMorgan Chase, and Wells Fargo.
Without the $30 billion in assistance, First Republic’s deposit decline would have been nearly $102 billion.
First Republic said it began experiencing an unprecedented outflow of deposits on March 10, shortly after the U.S. banking crisis, but things began to stabilize after it received $30 billion on March 16.
Unsecured deposits from banks have reportedly allowed First Republic to reduce its short-term borrowings, and as of April 21, 2023, total deposits stood at $102.7 billion.
On April 24, the bank’s stock closed up 12.2% to $16 per share. Still, it fell 22.19% in aftermarket trading as investors reviewed first-quarter results and assessed the potential effect of increased funding costs on the bank as the Fed continues raising interest rates to their highest level since 2007.
Following the investors’ assessment, the stock tumbled to $8.10 apiece, and by the time the market closed on Monday, it had fallen more than 87% since the start of 2023.
READ MORE: Bitcoin: Will a Fed Interest Rate Hike Make or Break BTC’s Rally?
The chief researcher at Collective Shift stated that Bitcoin’s value experienced a surge following a news report by Charles Gasperino, a business correspondent at Fox News. The report indicated that First Republic Bank’s associates anticipate the bank’s regulation by the government.
The price of Bitcoin (BTC) has risen 3.6% in the past 24 hours due to emerging concerns about another possible bank failure. As of the time of writing, the flagship cryptocurrency is trading at just over $29,000.
The asset’s daily trading volume is $21.2 billion and the market cap amounts to $562 billion market cap.
Also, the British multinational bank Standard Chartered said that Bitcoin could reach $100,000 by the end of 2024, adding that the so-called “crypto winter” is over.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
