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Following on the heels of First Republic Bank, PacWest Bancorp looks to be the next domino to fall. Bitcoin eyes breakout above $30,000.
Banks keep falling
Only a short time after the First Republic Bank failure, the 2nd biggest bank to fall in US history, PacWest Bancorp could be the next bank to stagger into the arms of FDIC receivership.
The usual platitudes and reassurances are issuing from PacWest along the lines that investor deposits are safe. However, PacWest shares have fallen 37% just since First Republic went down.
The price of PacWest was around $30 back in late January, but since then it has fallen to $6.40 today, having fallen as low as $3.05 at yesterday’s close.
PacWest does not deny that it is in discussions with potential buyers. In the same vein First Republic was purchased by JP Morgan for pennies on the dollar - a sign of the growing monopolisation of the banking industry.
Western Alliance is yet another regional bank that is concerning investors, although the bank has maintained that it has not experienced any unusual deposit outflows recently.
According to billionaire investor and hedge fund manager Bill Ackman, the regional banks are unable to survive bad data or bad news, while the GSIBs (Global Systemically Important Banks) are fine because the Federal Reserve will backstop them.
Bitcoin oblivious to banking woes
All the while, Bitcoin is maintaining its strong uptrend and looks as though it could break out above the $30,000 resistance as soon as this week.
It’s no wonder that the Biden Administration is cracking down on Bitcoin and crypto. As more banks fail, and those that remain offer little or no benefit to their depositors, the continual rise of Bitcoin is likely to impel many retail investors into withdrawing at least some of their deposits and putting them into the obvious Bitcoin hedge.
Mainstream media carries the government and central bank narrative to the people, and therefore the vast majority of retail are scared of crypto, and are also taken in by government assurances that everything is fine in the monetary system, even though it's patently obvious that it isn’t.
The current banking crisis is likely to be the worst in history. If the average person passively ignores this, the repercussions for them could possibly be life changing.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.