MEXCBreaking: Non-Crypto PacWest Bank Confirms Sale, Bitcoin Set To Hit $35K
After the collapse of First Republic Bank, another bank PacWest Bancorp has confirmed strategic options including a potential sale after shares continue to fall. The bank has now confirmed that it’s in discussion with several potential partners and investors.
The shares of PacWest Bancorp (PACW) fell over 40% to $4 in pre-market hours on May 4. PacWest is under pressure after the bank disclosed a potential sale and the U.S. Fed hiked rates by another 25 bps on Wednesday.
PacWest Bank Confirmed To Be Next To Fail
PacWest Bancorp on May confirmed reports that it’s in discussion with several potential investors. The bank is looking for strategic options to calm markets after its stock price tumbled 60%, concerning depositors and investors about the health of banks in the US.
“The bank has not experienced out-of-the-ordinary deposit flows following the sale of First Republic Bank and other new. Our cash and available liquidity remains solid and exceeded our uninsured deposits,” PacWest said in a statement dated Wednesday.
The bank suffered a withdrawal of $6.7 billion worth of deposits up to March 20. In fact, PacWest share trading was halted as shares fell by 52% on March 13 after the collapse of crypto-friendly banks Silvergate, Silicon Valley Bank, and Signature.
CoinGape Media reported that First Republic Bank will start the next wave of the banking crisis. The government seized and sold First Republic Bank to JPMorgan Chase & Co. The FDIC is relying on BlackRock to prevent further bank failures.
Regulators have blamed crypto for bank failures, but the collapse of First Republic Bank and the looming PacWest collapse prove otherwise. Large banks’ failure is putting pressure on small banks as interest-rate hikes impacted the value of banks’ bond holdings and led to an estimated $1.84 trillion in losses.
Also Read: US House Expedites Hearings On Crypto Regulations and Banking Failures
Meanwhile, Bitcoin price continues to rally higher as banks collapse, with a potential of hitting $35,000. The Fed Chair Jerome Powell has also hinted at a pivot coming soon. JPMorgan’s analysts predict rate cuts starting in the next quarter.
BTC price is currently trading at $29,082, up 2% in the last 24 hours as traders look to increase positions for over $30,000.
Also Read: Data Shows More US Bank Failures Ahead, Who Will SEC Blame Now?
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