The Bitcoin (BTC) prices have moved upwards as the news about the First Republic Bank deposit slum sparked on the internet.
According to the head of research at Collective Shift, the Australian Crypto Education Platform the prices of Bitcoin spiked immediately after the Fox News reporter broke the news that bankers working with First Republic Bank see institutions going into government receivership. The receivership generally refers to the tactic that allows creditors to recover their funds that are experiencing frequent defaults by assisting troubled firms.
As a result of the event, the price of Bitcoin has increased by 3% in the last 24 hours amidst the indication of First Republic Bank‘s failure whose share prices dropped by more than more than 50% on April 25. The bank began experiencing the issues in March. As a result, 11 of the largest banking institutions in the USA including Bank of America Corporation and J.P. Morgan deposited around $30 Billion for the troubled bank.
Although on April 23, the First Republic Bank reported its first quarter earnings call where the total deposits seemed to have plummeted by over $100 Billion. As a result, the bank shared its plans to pursue strategic options for strengthening its financial standing at the earliest. However, the bank is yet to share clear remarks on how and when it plans to execute strategic options.
The banking crisis has taken a heavy toll on financial institutions across the USA since the last year. The Silvergate Bank, Silicon Valley Investment Bank, and all other banks that have been shut down have created a turmoil situation for the USA. However, the March 26, 2023 reports from Bloomberg stated that US authorities were already planning to create an emergency lending facility for assisting the bank in the shoring up of structural challenges in the balance sheet.
