May 04, 2023
Crypto Gains Momentum as US Regional Bank Stocks Tumble After Hours
Cryptocurrency markets have been abuzz with news of the sudden collapse of several regional banks in the United States, causing the share prices of these banks to plummet in after-hours trading on May 3. Despite Federal Reserve Chairman Jerome Powell’s earlier statement that the banking sector was “sound” and “resilient”, PacWest Bancorp, Western Alliance Bancorp, Metropolitan Bank, HomeStreet, and other regional banks saw their share prices drop significantly.
PacWest Bancorp was the hardest hit, with a 52.5% drop in after-hours trading. The bank is reportedly considering a sale or capital raising, according to Bloomberg, citing people familiar with the matter. Western Alliance Bancorp saw a 22.4% drop, Metropolitan Bank a 16.2% drop, and HomeStreet a 7.8% drop.
Metropolitan Bank had previously offered services to crypto firms, but closed its digital asset vertical in January due to lack of confidence in the cryptocurrency industry. Western Alliance Bancorp, on the other hand, had integrated blockchain-based payment solutions for its client base from its blockchain and digital asset branch.
The Federal Reserve had announced that it would hike interest rates another 25 basis points, which Powell said was “committed to learning the right lessons from this episode, and we’ll work to prevent events like these from happening again.”
The collapse of First Republic Bank was the second-biggest bank failure of late, and it caused its share price to plummet 20% in hours. This led to many on Crypto Twitter mocking Powell for his statement that conditions in the banking sector “have broadly improved” since early March.
Will Clemente, the founder of digital asset analysis firm Reflexivity Research, tweeted to his 680,300 Twitter followers that the collapse of five banks — SVB, Silvergate, Signature, First Republic and PacWest — “sounds like a very sound and resilient banking system…”
Twitter user Zerohedge also made fun of Powell by noting to the1.6 million followers that over $500 billion had been wiped out from “bank failures” in the past month alone.
The 52% fall of PacWest Bancorp is set to wipe out about $340 million from its market cap, which was $772 million at the May 3 close, according to Google Finance.
The sudden collapse of these regional banks has led to an increased focus on the web3 space, with many investors turning to cryptocurrency and NFTs as a more reliable investment option. NFTs, or non-fungible tokens, are digital assets that are unique and cannot be replicated. They are becoming increasingly popular as a way to promote and sell digital artwork and other digital assets, and many companies are turning to NFT marketing agencies to help them reach a larger audience.
NFT marketing agencies specialize in helping companies promote their NFTs on social media platforms like Twitter, as well as other online platforms. They also provide advice on how to best market NFTs, and how to maximize their potential.
The web3 space is becoming increasingly popular as investors look for more reliable and secure investments. With the increasing popularity of NFTs, it is likely that more companies will turn to NFT marketing agencies to help them reach a larger audience and promote their products. As the web3 space continues to grow, it is likely that more investors will look to NFTs and other digital assets as a more secure and reliable investment option.
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.
