Republic First Bank shut down by US regulators – Crypto community reacts
US regulators shut down Republic First Bank in Philadelphia, the country's first bank failure in 2024.
Following the news, it sparked a debate among the crypto community between Bitcoin (BTC), Ether (ETH) and several altcoins.
“Another bank has collapsed, Republic First Bank. Yes… I think I'll stick with Bitcoin,” CEO of Zesh Marius Martoxan said on April 26 at XX.
“The collapse of Republic First Bank is worth watching because bank failures are the best narrative we can find for crypto,” said anonymous crypto trader Pillage Capital in an April 26 post on X.
“How many more failures do people need before they start owning their own banks?” crypto analyst Randy Hipper asked her 87,100 X followers on April 26.
After Republic was first seized by the Pennsylvania Department of Banking and Securities on April 26, the Federal Deposit Insurance Corporation (FDIC) was appointed receiver. According to a statement published by the FDIC on April 26, the agency will take over almost all deposits and hold all of Republic Bank's assets.
Republic First totaled nearly $6 billion in assets as of Jan. 31, with $4 billion in deposits.
In addition, the bank's 32 branches in New Jersey, Pennsylvania and New York will soon open under the Fulton Bank umbrella early next week.
In the year In 2023, even the rumors of possible bank failures showed a slight increase in the price of Bitcoin after a while, however, following the news, the price decreased slightly.
In the last hour, Bitcoin is down by 1.16%, at $62,715 and Ether is down by 0.58% at $3,095, according to CoinMarketCap data.
Meanwhile, altcoins saw a slightly larger decline in the same timeframe, with Dogecoin (DOGE) down 2.88% and Solana (SOL) down 1.79%.
The news follows a difficult year for the banking industry, with five bank failures recorded in the US in 2023, according to FDIC data.
Related: Custodia Bank takes case to Supreme Court after March collapse
First Republic Bank, a separate entity unrelated to Republic First, was acquired by JPMorgan in May 2023 after initial recovery efforts failed.
In the year In March 2023, the Federal Reserve announced the closure of Signature Bank to protect the US economy, citing a “systemic risk”.
It comes days after Silicon Valley Bank was ordered to close. A week ago, Silvergate Bank, another crypto-friendly bank, announced it was closing its doors and going into voluntary liquidation.
Magazine: Gordon Goner on the Amazing Health Wars and Bored Monkeys Switch 3
