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Markets

Bitcoin Rises as Latest Teetering U.S. Bank Sends Traders to Crypto Haven

California-based PacWest Bancorp is weighing strategic options, according to Bloomberg.

By Stephen Alpher
AccessTimeIconMay 3, 2023 at 9:32 p.m. UTC
Updated May 3, 2023 at 9:46 p.m. UTC
(Getty Images)
(Getty Images)

The banking crisis doesn't appear to be over yet. Shares of PacWest Bancorp (PACW) fell by more than 50% in after-hours action on Wednesday following a Bloomberg report the U.S.-based lender is mulling a range of strategic options.

Bitcoin (BTC) was up on the news, rising more than 2% to $28,900 at press time.

The news on PacWest comes only days after First Republic Bank (FRC) was taken over by the Federal Deposit Insurance Corp. (FDIC) and then sold at auction to JPMorgan (JPM). In a Monday morning call following the takeover, JPMorgan CEO Jamie Dimon said, "I think the banking system is very stable. ... This part of the crisis is over."

Federal Reserve Chairman Jerome Powell had similar thoughts after the latest Federal Open Market Committee meeting Wednesday. Speaking after the central bank's 10th consecutive rate hike, Powell declared the banking system to be "sound and resilient."

Other regional bank stocks have been moving lower on Thursday including Western Alliance Bancorp (WAL), down 28%, and Metropolitan Bank (MCB), down 19%.

Edited by Nick Baker.

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CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

Stephen Alpher
Stephen Alpher

Stephen Alpher is CoinDesk's managing editor for Markets. He holds BTC above CoinDesk’s disclosure threshold of $1,000.

Follow @SteveAlpher on Twitter