Could Bank Crisis be a Boost for Bitcoin Price?
Author: Alina SandersDuring the first quarter of 2021, First Republic revealed significant loses and it's CEO Mike Roffler noted that the bank would be taking multiple steps to reduce expenses and balance sheet size, including layoffs and executive level salary cuts. Although these steps did not help in stabilizing the institution, it still has to preserve investor confidence so it skipped an analyst Q&A session accompanied by the earnings report.
The BTCUSD chart priced in First Republic Bank shares reveals an important downtrend breakout in the middle of March. This chart could be suggesting that banking sector crisis is not over yet and it may even be escalating. Consequently, Bitcoin price is skyrocketing despite its USD price stays relatively stagnant.
Previous bank crisis experienced an increase of 40% in Bitcoin's price in just several days. Now we have to wait and see what next these events take place in this bank crisis, and how this will affect the BTC's price.