- First Republic Bank’s stock fell more than 94% in just 2 days.
- The Bitcoin (BTC) price rose about 6% to the $29K range.
First Republic Bank’s ($FRC) share price plunged around 50% as it lost more than $100 billion in customer deposits. Despite this, Bitcoin’s (BTC) price surged over 6% to the $29K price range.
After losing more than half of its deposits, First Republic Bank has a steep slope to climb to expand its business. Also, following its first-quarter earnings, FRC stock declined to a low of 49% and recorded the biggest crisis for the first time since 2008. In addition, First Republic shares have fallen by about 93.43% since the start of 2023.
Further, the price declines occurred the day after a mid-sized US bank reported that during the banking panic of last month, customers withdrew more than $100 billion from their accounts. Also, the FRC price dropped more than 94% in just 2 days, from $140.88 to $8.10 between April 24 and 26.
Positive Signal From The Crypto Market
Following a string of bank failures that raised concern about a crisis in the sector, investors have been closely monitoring the financial condition of local lenders ever since the collapse of Silicon Valley Bank and Signature Bank, which sparked fears of a spread across the banking industry. First Republic Bank was thought to be among the banks most exposed to failure.
However, the largest cryptocurrency, Bitcoin (BTC), has seen some price surges after the news of the banking crisis. Today, BTC soared over 6% from $27K to nearly $29K. And its 24-hour trading volume rose about 28% to $20 billion.
Moreover, the gloomy times for the bank are expected to continue for an entire year after the failure of the two largest U.S. banks last month caused a liquidity crisis at several regional lenders. This indicates a positive move for the global cryptocurrency market.
