Bitcoin surges over 3% amid fears of bank failure
Bitcoin's price increased over 3% due to fears of another bank failure after First Republic Bank's shares closed down over 50%, while the correlation between Bitcoin and the S&P 500 may be dwindling, according to crypto analytics firm Santiment.
The price of Bitcoin (BTC) increased by over 3% in the last 24 hours due to fears of another possible bank failure as First Republic Bank (FRC) shares closed down over 50% on April 25. Fox News Business reporter Charles Gasperino broke the news that bankers working with First Republic Bank expect the institution to go into government receivership. Receivership is a tactic that allows creditors to recover funds that are experiencing a potential default and assists troubled firms in avoiding bankruptcy.
The correlation between Bitcoin and the S&P 500 may be dwindling as the narrative that Bitcoin is a safe haven amid the banking crisis began to gather steam. The banking crisis has taken a heavy toll on financial institutions in the US this year, with Silvergate Bank closing its doors after experiencing a run on deposits, and Silicon Valley Investment Bank being shut down by the California Department of Financial Protection.
Despite the turmoil, US Treasury Secretary Janet Yellen has reiterated that the American banking sector remains robust and stable, saying "Our banking system remains sound, with strong capital and liquidity positions."
