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Republic First Bank Closure Sparks Crypto Debate Amidst First U.S. Banking Failure of 2024

The closure of Philadelphia-based Republic First Bank marks the inaugural banking failure in the United States for 2024.

This event has ignited discussions within the crypto community, with Bitcoin, Ether, and various altcoins experiencing slight setbacks in the wake of the news.

Zesh Marius Martocsan, CEO of X, expressed skepticism towards traditional banking, stating, “Another bank just collapsed, the Republic First Bank. Yeah… I think I’ll stick to Bitcoin.”

Pillage Capital, a pseudonymous crypto trader on X, viewed the failure of Republic First Bank as a significant narrative for crypto, stating, “Republic First Bank failure is worth a look since bank failures are the best possible narrative we can get for crypto.”

Randi Hipper, a crypto commentator, posed a thought-provoking question to her 87,100 X followers, asking, “How many more need to fail before people start to be their own bank?”

Following the seizure of Republic First by the Pennsylvania Department of Banking and Securities on April 26, the Federal Deposit Insurance Corporation (FDIC) was appointed as its receiver.

The FDIC will absorb nearly all deposits and assets of Republic Bank, as outlined in an April 26 statement by the agency.

As of January 31, Republic First possessed approximately $6 billion in total assets and $4 billion in total deposits.

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Subsequently, its 32 branches across New Jersey, Pennsylvania, and New York will reopen under the umbrella of Fulton Bank on April 27.

The news of Republic First Bank’s closure follows a challenging year for the banking industry, with FDIC data reporting five banking failures in the U.S. in 2023.

Furthermore, recent history has shown that even rumors of potential banking failures can impact Bitcoin’s price.

However, in this instance, Bitcoin is down 1.16% and trading at $62,715, while Ether is down 0.58% and trading at $3,095, according to CoinMarketCap data.

Altcoins have experienced a slightly more significant decline, with Dogecoin down 2.88% and Solana down 1.79% in the past hour.

In 2023, the closure of Signature Bank and Silicon Valley Bank, among others, underscored the challenges faced by the banking industry.

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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.

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