- The bank is now exploring different strategies
- In the meantime, the BTC chart has responded by rising
We wrote yesterday that a new banking panic is brewing in the U.S.. Pacwest and Western Alliance could cause it. Shares of these two banks were down about 50 percent the other day.
After yesterday’s U.S. Federal Reserve meeting and their decision to raise interest rates, Bloomberg issued a new article.
They write that PacWest Bancorp is considering various strategic options, including the potential sale of.
This information was reported to journalists by a source inside the company. Officially, PacWest declines to comment on this scenario.
After this Bloomberg article, Pacwest Bancorp shares fell another more than 52% on the premarket.
But we are interested in something else – how the banking problems affect the cryptocurrency industry.
Reaction of bitcoin
As with previous similar events (Signature Bank, SVB and First Republic problems), cryptocurrencies have benefited from problems in the U.S. financial system.
After all, it shows that digital assets could be an alternative to the old financial system. Here’s a recent BTC rate, by the way:
Bank problems make it more likely that the Fed will stop raising rates. This will give a breath of fresh air to risky assets, including cryptocurrencies.
BTC traders should therefore keep an eye on Pacwest and possible problems at other banks. The principle is simple: the worse the banks are doing, the more cryptocurrencies should grow.