Bitcoin hovers below $29,000 amid US regional bank stock crash and latest Fed rate hike
Bitcoin (BTC) hovers below the $29,000 level as US regional bank stocks crash and the Federal Reserve announces new rate hikes.
New data from the KBW Nasdaq Bank Index, which is designed to track the performance of leading US banks, reveals that bank stocks have fallen sharply since February, falling to a point not seen since late 2020.
According to Charlie Bilello, market strategist for the financial company Creative Planning, the problems are not going away as many regional bank stocks have. plunged this week.
– The regional bank problems will not disappear. This week…
PacWest (PACW): -67%
HomeStreet (HMST): -48%
First Horizon (FHN): -47%
Metropolitan Bank (MCB): -40%
First Foundation (FFWM): -35%
Western Alliance (WAL): -34%
Comerica (CMA): -25%
WesBanco (WSBC): -25%
Zion’s (ZION): -25%”
Furthermore, the Federal Reserve issued a new press release yesterday announcing further rate hikes in its continued fight against inflation.
“The U.S. banking system is solid and robust. Tighter credit conditions for households and businesses are likely to weigh on economic activity, employment and inflation. The magnitude of these effects remains uncertain. The Committee remains acutely aware of inflation risks.
The committee seeks to achieve maximum employment and inflation of 2% in the longer term. In support of these objectives, the Committee decided to raise the target range for the federal funds rate to 5 to 5.25%.”
BTC is trading at $28,904 at the time of writing, a 2.1% gain on the day, but down 6.7% from its 30-day high of $30,979.
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