Bitcoin claws back $28,000 as First Republic Bank falters
Bitcoin price has been in an upward trend through 2023 in the wake of historic bank runs, but recently rejected above the key $30,000 level.
However, the top cryptocurrency is now up 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. Here we take a closer look at how the continued crisis in the banking sector can strengthen the increasingly positive price action.
Bitcoin Retakes $28,000, But More Upside Coming?
In recent months, traditional banks have struggled with liquidity and insolvency issues, and Bitcoin has been a major beneficiary of this trend. Early March saw Silicon Valley Bank and other widespread bank runs.
As a result, BTCUSD climbed more than 40% in just a few days. Now, as First Republic Bank’s stock plummets, and more than $100 million in deposits flee the bank, Bitcoin is soaring once again.
While a $1,000 move is notable in itself, more importantly, Bitcoin retesting and holding a crucial support line could instill confidence in crypto bulls to push prices higher. Withdrawal would also be much less pronounced. Shallow corrections are a sign of buying pressure and demand
Bitcoin making new highs in 2023 could also 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
First Republic Bank risks failure, revives new crypto narrative
First Republic Bank’s share price decline is due to a negative earnings report for the first quarter. The bank revealed that more than $100 million in deposits had been withdrawn in Q1.
CEO Mike Roffler announced that the bank would “pursue strategic options” and “take steps to reduce our costs in a meaningful way to align with our focus on reducing the size of the balance sheet.” The bank will lay off up to 25% of its workforce, cut executive salaries and much more.
Charles Gasparino of Fox Business News claims bankers expect public reception for 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 the instability of the financial system. This phenomenon highlights the growing acceptance of Bitcoin as a store of value and a reliable investment.
The BTC banks narrative may be just what the market needed. Holding the current levels and testing previous levels could be extremely bullish for Bitcoin, possibly leading to further price appreciation in the future.
Bitcoin takes another leg up against #FirstRepublicBank pic.twitter.com/XNaaEUL4Aq
— Tony “The Bull” (@tonythebullBTC) 25 April 2023
