Breaking: Bitcoin, Ethereum Rally Despite First Republic Bank Crashes 70% Like SVB
First Republic Bank, another bank insured by the U.S. Federal Deposit Insurance Corporation (FDIC), plunges 70% in pre-market trading hours on Monday. Last week, shares of Silicon Valley Bank’s parent firm SVB Financial Group plummeted 70% in pre-market trading hours, causing regulators to take action.
First Republic Bank (FRC) share price fell 70% to nearly $25 in on March 13. The price closed on Friday at $81.76, down nearly 15%.
The surprising fall in shares across the banking sector is caused by pressure due to continuous rate hikes by the U.S. Federal Reserve. The regulators have closed crypto-friendly banks Silvergate, Silicon Valley Bank, and Signature Bank last week, causing chaos in global markets.
First Republic Bank shares are plummeting despite additional funding of $70 billion from JPMorgan to maintain liquidity. The U.S. Fed also came up with a plan to rescue the banking sector with emergency funding.
Also Read: JPMorgan Among Big Banks Bidding To Acquire SVB
Bitcoin and Ethereum Prices Rally
Bitcoin and Ethereum prices rally higher despite the shares of First Republic Bank fall in pre-market hours. Bitcoin price is trading above $24K, up 18% in the last 24 hours. The 24-hour low and high are $20,475 and $24,459, respectively. The trading volume is up nearly 100%, indicating an increase in interest.
Meanwhile, Ethereum price is trading at $1,690, up 7% in the last 24 hours. The 24-hour low and high are $1,468 and $1,700, respectively. The trading volume is up 80% 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 into Bitcoin (BTC), BNB, and Ethereum (ETH) due to the collapse of crypto-friendly banks and stablecoins depeg events.
Moreover, President Joe Biden in an address today declared that the US banking system is “safe” and pledged to impose stricter regulations on banks.
Also Read: Bitcoin Bull Run Incoming? Regulators Look To Curb SVB Led Contagion
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