- BTC has surged over 8% in the past 24 hours following the news of First Republic Bank’s share slump.
- The price gain was recorded across the board as the top 25 digital assets by market capitalization bounced positively with BTC.
- Technical indicators show that BTC may continue to rally after gradually breaking the correlation from the S&P 500.
Bitcoin (BTC) and Ethereum (ETH) have hit new highs in April, not recorded in recent months, with bulls keeping up the pressure in the light of the recent traditional financial institution’s debacle.
The price of BTC has moved in an upward trajectory after the news of more woes at First Republic Bank. BTC is up by 8.88% over the last 24 hours, breaking past $28,500 and exchanging hands at $29,839 at press time.
Jake Boyle, a director at crypto brokerage Caleb & Brown, gave his opinion on the issue, highlighting that banking failures led to a new positive outlook.
“With First Republic Bank looking like it could go under, I suspect the market is anticipating yet more liquidity injections to prop up what certainly seems to be an American banking sector that is still very much in the throes of crisis,” he said.
The price rally sparked off hours after Fox Business Reporter broke the news that bankers working with the institution expect it to go into government receivership. A receivership is a corporate restructuring model that allows creditors to recover funds and firms to avoid bankruptcy.
Other assets in the top 25 also recorded slight gains, with Solana leading the pack with 9%. Leading altcoin ETH gained 7.36% after sliding below $1,900 in a recent price correction which wiped away gains from the Shanghai upgrade. Dogecoin, Polkadot, and Polygon also recorded slight gains.
Bitcoins break away from stocks
For a greater part of 2022, BTC and stock prices saw a prior correlation as Feds continued to hike interest rates forcing investors to abandon risky assets. New data from crypto analytics firm Santiment suggests that the correlation between BTC and the S&P 500 may take a back seat as investors begin to see Bitcoin as a haven amidst the current traditional banking woes.
First Republic Bank was first reported to be in crisis in March, resulting in top banking institutions, including JPMorgan depositing $30 billion in the embattled bank. Later that month, the US authorities debated creating an emergency lending facility to help with the structural changes in the bank’s balance sheet.
On April 23, the bank announced its Q1 earnings, showing that deposits had plunged by over $100 billion while seeking to pursue “strategic options” to salvage the situation.