• Bitcoin recently rose more than $1,000 intraday to over $28,000 per coin after First Republic Bank shares collapsed.
• Holding a retest of previous levels combined with a new narrative could be extremely bullish for BTC.
• Banks have been struggling with issues of liquidity and insolvency, and Bitcoin has been a big beneficiary of this trend.
Bitcoin Reaches $28K After First Republic Bank Shares Collapse
Bitcoin price has been in an uptrend throughout 2023 in the wake of historic bank runs, but recently was rejected from above the key $30,000 level. However, the top cryptocurrency has now risen more than $1,000 intraday to over $28,000 per coin after First Republic Bank shares collapsed.
Why Is This Good News For Bitcoin?
Holding a retest of previous levels combined with a new narrative could be extremely bullish for BTC. Here is a closer look at how continued crisis in the banking sector could strengthen the increasingly positive price action:
Banking Industry Struggles Boosts Crypto
In the past few months, traditional banks have been struggling with issues of liquidity and insolvency, and Bitcoin has been a big beneficiary of this trend. In early March, Silicon Valley Bank and others saw widespread bank runs. As a result, BTCUSD climbed more than 40% in just a few days. Now, as First Republic Bank’s shares plummet and more than $100 million in deposits flee the bank, Bitcoin is soaring once again.
Upside Potential for Bitcoin
Pullbacks would also be getting much less pronounced which is sign of buying pressure and demand BitStarz Player Lands $2 million Record Win! Could you be next big winner? 570% up to 12 BTC + 300 Free Spins for new players & 1 BTC in bonuses every day only at Wildio Play Now! If fresh 2023 highs are made it will further signal crypto winter has ended and things will heat up un the coming weeks.
First Republic Bank’s Negative Earnings Report
First Republic Bank’s decline in share price is due to its negative first-quarter earnings report which revealed that more than $100 million in deposits had been withdrawn in Q1. CEO Mike Roffler announced that the bank would be “pursuing strategic options” such as laying off up to 25% of its workforce or cutting executive-level salaries etc.,