Cryptocurrency News

Bitcoin price witnesses hike over First Republic Bank’s deposit concerns

According to Cointelegraph, BTC price rallied post Charles Gasperino of Fox News Business informed that First Republic Bank’s bankers think that the platform will go into government receivership

Bitcoin (BTC) price witnessed an upward trend of over three percent in the last one day as First Republic Bank (FRC) shares concluded at less than 50% on March 25, 2023, as stated by Cointelegraph. 

According to Cointelegraph, BTC price rallied post Charles Gasperino, a Fox News Business reporter, informed that First Republic Bank’s bankers think that the platform will go into government receivership. It’s believed that First Republic started facing problems in March, 2023, which resulted in 11 United States’ banking institutions transferring $30 billion to the bank. 

Based on information by Cointelegraph, US officials stated that the bank’s deposits were “stabilising,” and didn’t face any contingency of undergoing “the kind of sudden, severe run” which caused Silicon Valley Bank’s closure. Reportedly, the reassurances have been verified as false. 

Moreover, Cointelegraph noted that on April 23, 2023, First Republic mentioned in its first quarter earnings that total deposits witnessed an over $100 billion downfall and it would be “pursuing strategic options” to ensure financial stability. Sources suggest that the bank intends to fire nearly 20-25% of its employees in Q2, 2023. 

(With insights from Cointelegraph)

Source:indianexpress.com

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