2023-05-05 08:03:19
While the price of bitcoin may soon break the $30,000 level again, after First Republic Bank, PacWest Bancorp may be the next financial institution to go bankrupt.
Not long after First Republic Bank after its collapse, the second largest bank failure in US history, PacWest Bancorp may be the next bank to be acquired or liquidated. And while PacWest tries to reassure customers that their deposits are safe, the bank’s stock has fallen 37% since First Republic’s collapse.
PacWest’s share price was still around $30 at the end of January, but by yesterday it had already fallen to $6.4, and at the time of writing it is $3.62. In addition, the bank also admitted that it is in talks with potential buyers. So PacWest may soon meet the fate of First Republic, which was bought by JP Morgan for practically pennies.
More and more investors may turn to bitcoin due to bank failures
Bill Ackman According to the billionaire investor, regional banks are in the greatest danger, since the larger banks are covered by the Federal Reserve. Ackman’s concern is well illustrated by the example of the regional bank called Western Alliance, as more and more of the financial institution’s clients are worried about the situation in the banking sector, and because of this, the bank can even expect a larger deposit outflow in the future.
Meanwhile, the price of bitcoin continues to rise despite minor declines. According to analysts, it may break through the $30,000 level already this weekend. It’s no wonder the Biden administration is cracking down on cryptos: as more and more banks fail and those that remain offer fewer opportunities for investors, the continued rise of bitcoin is likely to prompt many small investors to withdraw at least some of their deposits. and buy BTC.
Despite this, the mainstream media continues to convey the narrative of the government and central banks to the people, which is why a large part of the population does not dare to invest in cryptocurrency. In addition, most governments also make people believe that everything is fine with the monetary system and the banking sector, when it is obvious that this is not the case.
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