Bitcoin reacted with growth to the news about the problems of the PacWest bank

In the post-trade session on May 3, PacWest Bancorp shares plunged 52.5% after Bloomberg reported that it was exploring a potential sale or capital raise. Against this background, bitcoin liquidated losses after the Fed meeting.

The Fed raised the key rate range by 25 basis points, to 5-5.25% per annum.

Earlier, the head of the Fed, Jerome Powell, during a speech before Congress, said that there was a high probability of further tightening of monetary policy. However, the collapse of American credit institutions and the Swiss investment bank Credit Suisse made investors expect softer steps from the regulator.

During the press conference, Powell assured that the Fed “intends to learn the right lessons from this episode. [крахов SVB и Signature Bank] and work to ensure that such events do not happen again.”

The announcement from Bloomberg led to a backlash in the stocks of other regional banks, which may have similar problems as PacWest.

At the moment, the capitalization drop of Western Alliance was 30%, Metropolitan Bank – 20%, Valley National – 15%, HomeStreet – 11%, Zions Bank – 10%, KeyCorp – 8%.

In April, the digital asset industry-friendly Metropolitan Bank told the SEC that it was close to completing its previously announced exit from the cryptocurrency market.

Western Alliance Bancorp has also integrated blockchain-based payment solutions for clients.

After the shutdown of SVB and Signature Bank, the negative trend was continued by First Republic Bank. It is the second largest US institution in history to fail.

According to ZeroHedge, the assets of these banks amounted to $548 billion.

Earlier, former Goldman Sachs top manager and macro investor Raul Pal said that the cryptocurrency will outperform other assets amid the banking crisis.

Source: CryptoNewsHerald.com