Republic First Bank closed by US regulators — crypto community reacts

As an analyst with a background in finance and experience living through the 2008 financial crisis, I find the collapse of Republic First Bank a concerning development. The banking industry has had a rough year, with several high-profile failures, including Signature Bank and Silicon Valley Bank. These events have sparked fear among investors, causing slight declines in Bitcoin, Ether, and various altcoins’ prices.

As a financial analyst, I can confirm that reports indicate the closure of Republic First Bank based in Philadelphia by US regulators, signifying the first banking failure in the United States for the year 2024.

The announcement has ignited intense discussion within the cryptocurrency world, with Bitcoin (BTC), Ether (ETH), and various altcoins experiencing small setbacks as a result.

“The CEO of Zesh Marius Martocsan expressed his concern and announced a shift towards Bitcoin after yet another bank, the Republic First Bank, crumbled on April 26th.”

As a crypto investor, I find the failure of Republic First Bank intriguing because such events provide valuable insights into traditional finance that can indirectly benefit the crypto market.

“Randi Hipper posed a question to her 87,100 followers on April 26: ‘How many more instances of failure are required before individuals consider becoming their own financial institutions?'”

As a financial analyst, I can tell you that on April 26, the Pennsylvania Department of Banking and Securities reportedly took control of Republic First Bank. In this capacity, the Federal Deposit Insurance Corporation (FDIC) has been designated as the receiver. Consequently, the FDIC will assume the vast majority of deposits and obtain all of Republic Bank’s assets, based on an April 26 Reuters article.

According to Republic First’s latest reports, they held around $6 billion in overall assets and managed nearly $4 billion in customer deposits by the end of January.

Thirty-two branches of the bank are located in New Jersey, Pennsylvania, and New York, and they are set to resume operations under Fulton Bank’s ownership no later than the beginning of next week.

In the year 2023, whispers of potential banking collapses led to modest increases in Bitcoin’s value almost immediately. Yet, the price of Bitcoin has since dropped slightly with the arrival of this news.

In the previous hour, the price of Bitcoin has decreased by 1.16%, now sitting at $62,715 according to CoinMarketCap’s latest update. Similarly, Ether has experienced a decline of 0.58% and is currently trading at $3,095.

As an analyst, I’ve noticed that while Bitcoin experienced a decline of 1.53%, altcoins like Dogecoin (DOGE) and Solana (SOL) have suffered larger losses within the same timeframe, with Dogecoin dropping by 2.88% and Solana losing 1.79%.

As a researcher, I’ve come across some troubling news for the banking sector. Based on FDIC data from the year 2023, there were unfortunately five bank failures documented in the United States.

In May 2023, JPMorgan took over First Republic Bank as a distinct entity following unsuccessful attempts to revive it earlier.

In March 2023, the Federal Reserve made the decision to shut down Signature Bank, asserting that this action was necessary for safeguarding the American economy due to the potential risks it posed (referred to as “systemic risk”).

As a crypto investor, I’ve been closely monitoring the recent developments in the banking sector. Just a few days ago, I was shocked to learn that Silicon Valley Bank had been ordered to shut down. This news came on the heels of Silvergate Bank announcing its intention to close and voluntarily liquidate itself a week prior. These events have raised significant concerns within the crypto community.

2024-04-27 05:22

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