Bank stocks have imploded today following the latest events in the US. Check out the latest reports below.
Bank stocks are imploding
Crypto markets are flying as banks, and traditional finance stocks get hammered by investors grappling with the collapse of several large banking institutions.
The inline pubcalition the Daily Hodl notes this: “As a new trading week begins, bank stocks are proving to be the biggest losers, with some of them suffering as much as 75% in losses mere hours into the open.”
Bitcoin (BTC) bull and head of ARK Invest Cathie Wood warns that if the Federal Reserve doesn’t pivot on interest rates, more banks will be destroyed.
“If the Fed continues to focus on lagging indicators like the CPI, and does not pivot in response to the deflationary forces telegraphed by the inverted yield curve, then this crisis will devour more regional banks and further centralize, if not nationalize, the US banking system.”
The same notes continued and revealed the following:
“As a result, [ARK Invest is] not surprised that BTC and ETH appreciated as US regional bank stocks imploded. Their blockchains are decentralized, transparent, and auditable. Banks are not and, in the last few days, have become less so.”
The price of Bitcoin (BTC) is soaring as the Biden Administration races to prevent the collapse of Silicon Valley Bank from triggering a mass exodus at regional banks across the U.S.
“The U.S. Treasury Department is conducting a series of emergency meetings to determine whether it should ensure all depositors at SVB will be made whole after the bank’s sudden collapse,” reports the Washington Post.
The outlet cites people with knowledge of the matter who are speaking on internal deliberations at the Treasury Department, Federal Reserve, and FDIC.
Check out our previous article in order to learn more details.