As the turmoil in the banking sector continues, First Republic Bank (FRC), another major U.S based bank is headed toward failure after its shares’ price dropped by ~50%. After the news about the price drop in FRC shares was released, Bitcoin price rose by ~3.66% in the last 24 hours.
On Tuesday, the bank’s shares plunged by over ~50% in a fraction of the time after depositors pulled out a $100 billion investment from the bank. The drastic drop in the share price prompted fear of a collapse in the customers like Silicon Valley Bank and Signature Bank.
The massive sell-off started after the bank disclosed a 40% loss in its first quarter report, as the banking sector is going through a major crisis of confidence that is reminiscent of the 2007-2008 financial crash.
Furthermore, Charles Gasparino from Fox News Business dropped a bombshell on the Twitter thread that bankers are working with First Republic Bank, expecting “eventual govt receivership for the ailing bank”.
The news added fuel to the panic sale and made the situation worst for customers and investors. However, the shares value of the First Republic Bank already dropped approximately 90% since March, as it plunged from $160 to $8.10, so the devastation in its value is not a new hot topic at all.
Also Read: Crypto Depositors’ Exodus Fails to Take Down Signature Bank, Says NY Regulator
