Bitcoin Reclaims $28,000 As First Republic Bank Falters
Bitcoin price has been in an uptrend throughout 2023 after historic bank runs, but has recently been rejected above the key $30,000 level.
However, the leading cryptocurrency has already rallied over $1,000 intraday to over $28,000 per coin after First Republic Bank shares collapsed. Maintaining a retest of previous levels combined with a new narrative could be wildly bullish for BTC. Here, a closer look at how the ongoing downturn in the banking sector could strengthen the increasingly positive price action.
Bitcoin Takes Back $28,000, But Are There More Upsides to Come?
In recent months, traditional banks have been struggling with liquidity and insolvency issues, and Bitcoin has been a huge beneficiary of this trend. In early March, Silicon Valley Bank and others saw widespread bank runs.
As a result, BTCUSD surged by more than 40% in just a few days. Now, with First Republic Bank stock plummeting and over $100 million in deposits fleeing the bank, Bitcoin is on the rise again.
While a move towards $1,000 is notable, it is important to point out that Bitcoin’s retest and maintenance of a crucial support line could instill confidence in the cryptocurrency’s bulls to push prices higher. The pullbacks would also be getting much less pronounced. Shallow corrections are a sign of buying and demand pressure
Bitcoin reaching new highs in 2023 could also further signal that the crypto winter is over and things will heat up in the coming weeks.
Bank runs lead to Bitcoin rallies | BTCUSD on TradingView.com
Banco da Primeira República is at risk of bankruptcy, reigniting a new cryptographic narrative
The decline in First Republic Bank’s stock price is due to a negative first quarter earnings report. The bank revealed that more than $100 million in deposits were withdrawn in the first quarter.
CEO Mike Roffler announced that the bank would be “looking at strategic options” and “taking steps to significantly reduce our expenses to align with our focus on reducing balance sheet size.” The bank will lay off up to 25% of its workforce, cut executive pay and more.
Charles Gasparino, Fox Business News claims bankers expect government liquidation of First Republic Bank as “private sector solutions” fail to attract interest from buyers or investors.
As traditional banks continue to face financial crises, investors are turning to Bitcoin as a hedge against financial system instability. This phenomenon highlights the growing acceptance of Bitcoin as a store of value and a reliable investment.
The BTC beats the banks narrative may be just what the market needed. Holding current levels and testing previous levels could be extremely bullish for Bitcoin, possibly leading to further price appreciation in the future.
Bitcoin is making another edge against #FirstRepublicBank pic.twitter.com/XNaaEUL4Aq
— Tony “The Bull” (@tonythebullBTC) April 25, 2023