Apr 26, 2023
Bitcoin Rallies as U.S. Bank Fears Mount
Bitcoin (BTC) has surged over 3% in the last 24 hours following news of a potential bank failure at First Republic Bank (FRC). The bank’s shares closed down more than 50% on April 25, prompting speculation of a possible government receivership.
The Head of Research at Australian crypto education platform Collective Shift believes the rally in Bitcoin was an immediate reaction to Fox News Business Reporter Charles Gasperino’s breaking news. Receivership is a tactic used by creditors to recover funds from a potential default, and can help troubled firms avoid bankruptcy.
Data from crypto analytics firm Santiment suggested a diminishing correlation between Bitcoin and the S&P500, as the narrative of Bitcoin as a safe haven during a banking crisis began to gain traction.
The issues at First Republic Bank began in early March, resulting in 11 of the largest US banks, including J.P. Morgan and Bank of America Corp., depositing $30 billion in an effort to stabilize the institution.
However, on April 23, First Republic reported a total deposit drop of more than $100 billion in its first quarter earnings call, and announced it would be “pursuing strategic options” to improve its financial standing. These options include salary cuts, office lease reductions, and a potential 20-25% reduction in staff in the second quarter.
The banking crisis has taken a heavy toll on financial institutions in the US this year, with Silvergate Bank announcing closure on March 8 and Silicon Valley Investment Bank being shut down on March 10.
Despite the turmoil, US Treasury Secretary Janet Yellen has maintained that the American banking sector remains robust and stable. She stated in remarks from the Financial Stability Oversight Council (FSOC) Council Meeting on April 21 that the banking system is “sound, with strong capital and liquidity positions”.
The news of First Republic Bank’s potential receivership has sparked a renewed interest in the web3 space, with many investors turning to crypto as a safe haven in the face of the banking crisis.
NFTs have been particularly popular, with many investors looking to diversify their portfolios by investing in digital art and collectibles. As the demand for NFTs rises, so too does the need for effective NFT marketing.
Twitter has become a popular platform for NFT marketing, with many NFTs being promoted through tweets and other social media posts. Many NFTs have even become viral sensations, with some garnering millions of views and likes.
To help meet the demand for NFT marketing, a number of agencies have sprung up, offering services such as NFT promotion and selling. These agencies are well-versed in the web3 space, and have the expertise to help clients maximize their NFT sales.
As the banking crisis continues to unfold, the web3 space is likely to remain a popular alternative for investors looking to diversify their portfolios. NFTs, in particular, are expected to remain in high demand, with NFT marketing agencies playing an increasingly important role in helping to promote and sell these digital assets.
Disclaimer: All investment or financial opinions expressed by MoonLanding Media are not recommendations and are intended for entertainment purposes only. Do your own research prior to making any kind of investment. This article has been generated based on trending topics, has not been fact checked and may contain incorrect information. Please verify all information before relying on it.
