The US government has refused to bail out First Republic Bank (FRC Bank), resulting in its stock plummeting 25%, following a 50% fall the day before. CNBC has reported that an intervention from the government was not expected and that no buyers were likely to step in until substantial federal guarantees were given. Deposits at the bank have dropped drastically, from $200bn last year to around $75bn now. As a result, a bank run is expected with investors steering clear of the troubled institution. Meanwhile, Amazon Web Services and Kronos Labs have partnered to launch an online marketplace for non-fungible tokens (NFTs), causing Crow shares to surge 9%.
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FRC Bank in Trouble
The US government recently announced that they will not be helping to bail out FRC Bank, a bank that has been struggling for some time. The bank is down 25% and was down 50% the previous day. Bitcoin has gone up slightly due to this news. However, with the government unwilling to intervene, it seems that no one will be stepping in to help. This has caused a bank run, with many investors withdrawing their money. With a dividend yield of 17.7%, investors are certainly scared.
Other Crypto Market News
Despite the bad news surrounding FRC Banks, there is still some positivity in the crypto market. Amazon web services and blockchain startup Kronos Labs announced a partnership to launch an online Marketplace for nfts, which caused a surge in prices. The house is expected to pass the debt ceiling bill this week, which would be positive news for those worried about the US defaulting on their debt. Deloitte, a Big Four County firm, is also seeking individuals with expertise in crypto to join their team.
Market Outlook
Bitcoin is up a lot, but it’s important to keep your head straight. After moving up 50% in the last month, it may be best to sit back and watch. With some cash on the sidelines, investors can be prepared in case the market falls back down. There are key support areas to watch, such as the 26.5 mark and the 200 week moving average at around 25.8. However, it’s possible that there may be a bounce off the 50-day moving average around 27.4.
Conclusion
Overall, it’s been a big day for the crypto market, with some bad news for FRC Bank and some positive news for other companies. With Bitcoin up and the market outlook uncertain, it’s important to keep a level head and be prepared for any potential dips.
