US banking crisis accelerates as government refuses to bail out First Republic, stock trading halted as bitcoin hits $30,000

Pressures mount on the aging financial system as reports suggest the US government will not step in to bail out the collapsing First Republic bank.

First Republic shares continue to fall and were suspended from trading five times this morning by the New York Stock Exchange (NYSE) due to extreme volatility.

The bank’s troubles took a new turn yesterday when it was revealed that over $100 billion worth of customer deposits had fled the bank in March and layoffs were inevitable.

It was previously expected that the US government would step in to bail out the bank, as it has done in similar situations in the past. However, a new report from CNBC says otherwise.

Sources reportedly told CNBC’s David Faber today that US government officials are “unwilling to intervene in the First Republic bailout process” at this time, adding to the uncertainty surrounding the troubled bank. The situation for First Republic comes even as 11 other institutions are injecting over $30 billion into the bank to bail it out, and last-ditch attempts are reportedly being made to ask for more money.

First Republic (FRC) stock is trading at $6.50 and is now about 97% below its all-time high set in November 2021.

Source: Google Finance

Meanwhile, Bitcoin (BTC) is up 8% on the day, potentially responding to the crisis. The flagship cryptocurrency retouched $30,000 Wednesday morning after floating near $27,000 for several days.

While the majority of market participants have been expecting a significant consolidation phase for Bitcoin, some BTC bulls are instead anticipating a new price parabola in the near term leading next year’s scheduled halving, which will dent BTC miners’ rewards from halving and historically falling with bull runs together.

Pseudonymous analyst TechDev recently shared with his 409,000 Twitter followers that multiple technical indicators suggest BTC is repeating its market structure of the 2015 bull cycle, when the king crypto surged from less than $200 to $20,000 in about two years.

“Early stage Bitcoin parabola after 1.5 year correction.”

Source: TechDev/TwitterDon’t miss a thing – Sign up to receive crypto email alerts straight to your inbox

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