Crypto Next World Crypto Free Tips & News Update.
While bitcoin still maintains a somewhat close correlation with the S&P 500, the digital currency is now being touted as a better alternative to traditional banking.
value of Bitcoin (BTC) is rising dramatically despite starting the day bearish. At the time of writing, the leading digital currency is changing hands after $28,810.19 printing An increase of 5.41% in the last 24 hours. Based on its current outlook, the cryptocurrency is now recovering losses incurred over the last 7-day period which could turn positive towards the week-end. Surprisingly, bitcoin’s latest surge comes after growing concerns about bitcoin’s future First Republic Bank (NYSE: FRC) that has been registering some form of stability in both its liquidity and share price.
In its latest earnings report, First Republic Bank revealed that its deposits fell by $100 billion in the first quarter.
measures the performance of the company informed of showed that its revenue fell 13.4%. The regional bank’s net income also came in at $269 million, a figure that represented a 32.9% slump from the year-ago period. Despite the glaring hole in its balance sheet, the company’s founder and executive chairman, Jim Herbert, and CEO Mike Roffler tried to allay investors’ fears in a joint statement.
“With the stabilization of our deposit base and the strength of our credit quality and capital position, we are taking steps to strengthen our business. We remain fully committed to serving our communities, and we will And grateful for the continued support of colleagues.”
Despite these assurances, the bank’s shares recorded one of their worst days since going public, falling 49.37% to $8.10 per share. The 4.69% recovery in the pre-market has yet to allay concerns that the FRC could end up like Silicon Valley Bank (SVB).
First Republic Bank Crisis: Bitcoin to the Rescue
There are a number of solutions that have been directed at helping the FRC get back on its feet and make bitcoin less of a struggle. While bitcoin still maintains a somewhat close correlation S&P 500 Index (INDEXSP: .INX), digital currency is now being touted as a better alternative to traditional banking for anyone who wants to keep their money with them.
It is ironic that bitcoin picked up momentum as First Republic Bank was seeing a major selloff, however, which can be seen as an important vote of confidence in the asset’s technology, ecosystem and underlying economics.
Digital currency has had a promising year for the better part of April. While the week started roughly, the current resurgence has helped bitcoin maintain its year-to-date (YTD) gain of 74.39%. Not only has it outperformed the S&P 500, but it is also significantly higher than many digital currencies around today.
Bitcoin’s decentralization, immunity from regulation, and growing demand have been cited as some of the reasons why the cryptocurrency is a better investment asset than FRCs or most stocks.
Benjamin Godfrey is a blockchain enthusiast and journalist who loves to write about real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desire to educate people about cryptocurrencies drives his contributions to well-known blockchain-based media and sites. Benjamin Godfrey is a lover of sports and agriculture.
Subscribe to our Telegram channel.
Add