U.S. bank stocks reacted by falling on the speech of U.S. Federal Reserve Chairman Jerome Powell, who on Wednesday, May 3, tried to calm the financial markets;
Michael Van de Poppe thinks that such stock market moves could trigger another banking crisis, and as a result the value of bitcoin could rise..
Van De Popp points out that although Powell tries to assure everyone of the reliability and sustainability of the banking system, few people believe him;
Within hours of the official’s speech, shares of PacWest Bancorp, a bank holding company, fell nearly 58%, and Western Alliance fell more than 28%..
Also in the outsiders of the market were such credit institutions as: Comerica (-10.06%), Zion Bancorp (-9.71%), KeyCorp (-6.93%).
Van De Popp using a 30-minute bitcoin chart showed: While banks were falling in value, the first cryptocurrency was rising. In addition, gold was on the rise..
According to the analyst, the simultaneous growth of BTC and the precious metal is positive for the crypto market.
According to the founder of EightGlobal, uncertainty and mistrust in statements of government officials is growing among bankers.
Such sentiments could lead to more problems in traditional markets.
The analyst believes that the picture of events does not bode well for the U.S. banking industry: if a solution is not found soon, the consequences of the crisis could be devastating.
The cryptocurrency market has reacted cautiously to the collapse of regional U.S. banks.