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Crypto News

PacWest Bank Takeover Boosts Bitcoin As Investors Seek Safe Havens

Author

Jay Solano

Tags

Reading time

1 min
Last update

Author

Jay Solano

Tags

Reading time

1 min
Last update

Author

Jay Solano

Tags

Reading time

1 min
Last update

pacwest

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There are still signs that the banking crisis is persisting. In after-hours trading on Wednesday, PacWest Bancorp (PACW) shares dropped more than 50% in response to a Bloomberg report that the American lender is considering a number of strategic alternatives.

In response to the news, Bitcoin (BTC) increased by more than 2.04% to $29,100 as of publication.

The recent news regarding PacWest occurred shortly after the Federal Deposit Insurance Corp. (FDIC) took over First Republic Bank (FRC) and then sold it to JPMorgan (JPM) in an auction. During a call on Monday morning after the takeover, JPMorgan CEO Jamie Dimon stated that he believed the banking system was very stable and that this part of the crisis had come to an end.

Federal Reserve Chairman Jerome Powell expressed similar comments following the most recent Federal Open Market Committee meeting on Wednesday. After the central bank raised interest rates for the tenth time in a row, Powell proclaimed the banking system to be “sound and resilient.”

On Thursday, shares of several regional banks collapsed, including Western Alliance Bancorp (WAL), dropped 28%, and Metropolitan Bank (MCB), down 19%.