Bitcoin, Ethereum Fall As First Republic Bank Crashes 70%
First Republic Bank, another bank insured by the US Federal Deposit Insurance Corporation (FDIC), plunged 70% in pre-market trading on Monday. Last week, shares of Silicon Valley Bank’s parent company SVB Financial Group fell 70% in premarket hours, prompting regulators to take action.
First Republic Bank (FRC) shares fell 70% to nearly $25 in pre-market hours on March 13. The stock closed Friday at $81.76, down nearly 15%.
The surprise fall in banking stocks is caused by pressure from continuous rate hikes by the US Federal Reserve. Regulators have shut down crypto-friendly banks Silvergate, Silicon Valley Bank and Signature Bank last week, causing chaos in global markets.
First Republic Bank shares plunge despite an additional $70 billion in funding from JPMorgan to maintain liquidity. The US central bank also came up with a plan to save the banking sector with emergency funding.
Read also: JPMorgan among major banks offers to buy SVB
Bitcoin and Ethereum rates lose previous gains
Bitcoin and Ethereum prices shed earlier gains after shares of First Republic Bank fall in pre-market hours. Bitcoin price is trading at $22,147, up 7% in the last 24 hours. The 24-hour low and high are $20,475 and $22,728, respectively. Trading volume is up almost 100%, indicating an increase in interest.
Meanwhile, the Ethereum price is trading at $1,584, up 7% in the last 24 hours. The 24-hour low and high are $1,468 and $1,629 respectively. Trading volume has increased by 70% in the last 24 hours.
The crypto market has jumped higher today as investors move away from stablecoins. Binance converted the remaining funds in the industry Recovery Initiative to Bitcoin (BTC), BNB and Ethereum (ETH) due to the collapse of crypto-friendly banks and stablecoins depeg events.
Also Read: Bitcoin Bull Run Incoming? Regulators appear to mitigate SVB Led contagion
