First Republic Bank Plunges Another 20% With Bitcoin ‘Poised For $40K’
Bitcoin (BTC) marked $30,000 at the April 26 Wall Street open as bulls gained further momentum from US banking woes.
Hayes: ‘Uncertainty’ Drives BTC Price, Gold
Data from Cointelegraph Markets Pro and TradingView followed as they briefly regained the psychological line in the sand, capping 11% gains versus April 24 local lows.
The pair continued to react positively to the rapidly developing next chapter of the US banking crisis. This centered around First Republic Bank, which disclosed a $100 billion reduction in deposits this week.
The US government was reportedly uninterested in intervening on the day, according to a source cited by CNBC, as the bank’s stock, FRC, opened down another 22% before being halted on volatility. Weekly share price losses were thus over 50%.
RespondingArthur Hayes, former CEO of crypto derivatives exchange BitMEX, smelled blood.
If the government were to refuse to bail out First Republic, he argued, it could set off a dangerous chain reaction of insolvencies.
“But if the $FRC fails, and depositors take an L. Then every other bank with the same problems will fail shortly after. The entire US banking system suffers from the same problems,” a Twitter thread said.
Hayes concluded that both Bitcoin and gold mainly benefited from the lack of clarity and associated cold feet surrounding the bank’s fate and lawmakers’ next steps.
“This uncertainty is what drives outside money like gold and BTC higher,” he said.
$40,000 Bitcoin Price Coming In?
Bitcoin traders and analysts thus remained confident that the overall uptrend will continue, regardless of any temporary consolidating moves around the $30,000 mark.
Related: Bitcoin Touches $30K As BTC Bulls Well Positioned For Weekly $3.2B Options Expiration
“The decisive switch was $27,800, not $28,800,” reflected Michaël van de Poppe, founder and CEO of trading firm Eight.
“We’re ready for $40,000.”
Daan Crypto Trades made comparisons between the current rally and the previous crash to monthly lows.
“Sweeps the peaks in rapid succession. Similar price action that we saw on the way down where we had about a dozen of these before the price really broke down.” in summary.
Others, including popular trader Jelle and Byzantine General, predicted a return to range-bound BTC price action at $30,000.
“Oh, I got really dry here. About $500 million wiped out,” the latter noted on the derivatives markets’ reaction to the recent gains.
“So that prolly also means this mini-rally is about to finish, consolidation next.”
This article does not contain investment advice or recommendations. All investment and trading moves involve risk and readers should conduct their own research when making a decision.
