Bitcoin’s price targets have exceeded recent 10-month highs, reaching $30,000 at the Wall Street open on April 26. The US banking crisis has contributed to the bullish sentiment among investors. Data from Cointelegraph Markets Pro and TradingView indicate an 11% gain from local lows on April 24. This surge is related to First Republic Bank’s $100-billion reduction in deposits, which is causing concern among lawmakers and depositors. As the situation with First Republic Bank remains unclear, Bitcoin and gold have emerged as alternative investments, which has boosted their value.
Hayes: Bitcoin and Gold Benefit from Lack of Clarity Surrounding First Republic Bank
Arthur Hayes, the former CEO of BitMEX, believes that Bitcoin and gold are benefiting from the uncertainty surrounding the fate of First Republic Bank. If the government refuses to bail out the First Republic, this could trigger a chain reaction of insolvencies. If depositors lose their money and the bank fails, other banks with the same issues could suffer the same fate, creating systemic issues for the US banking system. The lack of clarity regarding the bank’s future is driving investors to seek safe havens, such as Bitcoin and gold, to protect their assets.
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Analysts Confident in Bitcoin’s Uptrend, Targets Set for $40K
Despite temporary consolidation around the $30,000 mark, Bitcoin traders and analysts remain confident in the currency’s uptrend. Some analysts are predicting targets of $40,000 in the near future. Michaël van de Poppe, the founder and CEO of trading firm Eight, notes that the crucial breaker was $27,800, not $28,800, which bodes well for the currency’s future. Other analysts, however, predict that Bitcoin’s price will remain range-bound at around $30,000. The derivatives market has also reacted to the latest gains, with over $500 million wiped out, suggesting that a consolidation phase is on the horizon.
Related: How To Buy Or Sell Bitcoin Without Using A Centralized Crypto Exchange
First Republic Bank’s Stock Plummets Amid $100 Billion Reduction in Deposits
First Republic Bank has seen a significant reduction in deposits, totaling $100 billion, which has caused a panic among lawmakers and depositors. The US government reportedly refused to intervene, creating uncertainty around the bank’s future. As a result, First Republic Bank’s stock, FRC, plummeted by 22% upon opening and lost over 50% of its weekly stock price value. The situation has created systemic issues for the US banking system, with Arthur Hayes predicting that if First Republic fails, other banks with similar issues could follow suit.
Source: Cointelegraph