The bitcoin (BTC) price has increased in value by almost 4% since last night. The increase follows new concerns about a bank. This time it is First Republic Bank where there would be trouble.
Bitcoin Rising, Banking Crisis Not Over Yet?
Looking at the bitcoin chart, a clear increase can be seen that started around 19:00 Dutch time. BTC is up nearly 4% since then. On the Dutch crypto exchange Bitvavo, the bitcoin price in euros thus amounts to 25,807.
The increase is somewhat striking. The price seemed to correct after the large increases of recent times. However, when Charles Gasparino, a presenter at FOX Business Network, broke the news that First Republic Bank was in trouble, crypto rose pretty quickly.
“Bitcoin $BTC is up 2.4% in the past 90 minutes after @CGasparino broke the news that bankers affiliated with First Republic Bank $FRB “expect any government receivership.”
#Bitcoin $BTC is up 2.4% in the last 90 minutes after @CGasparino breaks the news that bankers working with First Republic Bank $FRB “expect eventual govt receivership.”
Price was $27,500 at the time of the tweet and is now $28,150. pic.twitter.com/aSjzFXiip6
— Matt Willemsen (@matt_willemsen) April 25, 2023
First Republic Bank a “zombie bank”
Gasparino announced in a tweet that the banks that have put money into First Republic Bank are increasingly seeing the bank as a “zombie bank.” That means the bank “is unable to compete adequately, but is not in immediate danger of collapse.”
The bank’s shares fell sharply yesterday. All in all, its value fell by almost 50%. In short, there are great concerns about the bank and its future. However, Bitcoin seems to be able to benefit from the problems.
The problems at the American bank do not come out of the blue. The share price already took a hit in March when major liquidity concerns arose.
As previously reported in the crypto news, the major US bank JPMorgan called the banking crisis a victory for crypto. Well-known investor Cathie Wood sees more institutional investors moving to bitcoin as a result of the banking crisis.