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- First Republic Bank’s stock dropped over 94% within just 2 days.
- The price of Bitcoin (BTC) increased approximately 6% to the $29K level.
The share price of First Republic Bank ($FRC) fell by around 50% as it experienced a loss of more than $100 billion in customer deposits. In contrast, Bitcoin’s (BTC) price rose by over 6% to the $29K range.
After losing more than half of its deposits, First Republic Bank faces significant challenges in expanding its operations. Following its first-quarter earnings report, FRC stock dropped to a low of 49%, marking the most severe crisis for the bank since 2008. Additionally, First Republic shares have decreased by approximately 93.43% since the beginning of 2023.
Moreover, the price declines occurred the day after a mid-sized U.S. bank disclosed that during last month’s banking panic, customers withdrew over $100 billion from their accounts. The FRC price plummeted more than 94% in just 2 days, falling from $140.88 to $8.10 between April 24 and 26.
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First Republic Bank ($FRC) Price Chart (Source: Tradingview)
Positive Signal From The Crypto Market
In the wake of a series of bank failures that heightened concerns about a crisis in the sector, investors have been closely observing the financial stability of local banks since the collapse of Silicon Valley Bank and Signature Bank, which raised fears of a broader impact across the banking industry. First Republic Bank was considered one of the banks most vulnerable to failure.
Nonetheless, the leading cryptocurrency, Bitcoin (BTC), has experienced some price increases following the news of the banking crisis. Today, BTC surged over 6% from $27K to nearly $29K, with its 24-hour trading volume rising about 28% to $20 billion.
Bitcoin (BTC) Price Chart (Source: CoinMarketCap)
Furthermore, the challenging situation for the bank is anticipated to persist for an entire year after the collapse of the two largest U.S. banks last month triggered a liquidity crisis among several regional lenders. This suggests a favorable trend for the global cryptocurrency market.
