Bitcoin, U.S. Stock Futures Erase Early Gains as First Republic Bank Tanks 50% in Premarket Trading

Risk assets erased early gains during the European hours as shares in San Francisco-based First Republic bank nosedived in premarket trading, reflecting continued investor angst over the banking sector's health.

Bitcoin pulled back to $22,000, having nearly tested the 50-day simple moving average at $22,900 during the Asian hours.
Futures tied to the S&P 500 fell from 3,971 to 3,887, reversing over a 1.5% gain. European stocks fell over 2%, with banking shares leading the way lower.
First Republic Bank fell nearly 60% in premarket trading even as the bank said it secured additional funding through JPMorgan, giving it access to $70 billion in liquid funds.
The German two-year government bond yield suffered the largest drop on record, signifying increased safe-haven buying and investors trimming expectations for European Central Bank rate hikes. Goldman Sachs revoked its forecast for next week's Federal Reserve rate hike, citing stress in the banking sector.
U.S. authorities announced emergency measures on Sunday to boost confidence in the baking system after the failure of startups friendly Silicon Valley Bank.

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Omkar Godbole

Omkar Godbole is a Co-Managing Editor on CoinDesk's Markets team.

Follow @godbole17 on Twitter

Learn more about Consensus 2024, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.