Bitcoin (BTC) reclaimed $29,000 overnight into May 4 as the United States banking crisis risked spawning new victims.
Gold, Bitcoin benefit from U.S. banking mayhem
Data from Cointelegraph Markets Pro and TradingView tracked a swift change of mood for BTC/USD, which hit $29,242 on Bitstamp.
The pair had sunk to daily lows at the previous day’s Wall Street open as markets awaited a decision on interest rates from the Federal Reserve.
At the same time, more U.S. regional bank stocks were suffering, the trend remaining as the Fed confirmed its much-anticipated 0.25% hike.
One lender, PacWest Bancorp (PACW) then reportedly announced that it was considering a buyout, pressuring the regional bank sector even further while providing a boost to havens including Bitcoin.
Gold even hit new all-time highs as market commentators criticized the Fed’s approach and predicted the end of rate hikes altogether.
“The biggest joke is the fact that Jerome Powell says that the banking system has improved and is healthy, sound and resilient. It’s the weakest it has ever been and another few banks have been falling apart after market,” Michaël van de Poppe, founder and CEO of trading firm Eight, reacted.
“This was the last hike.”
Van de Poppe referenced comments on the regional banking sector by Fed Chair Jerome Powell, which accompanied the rate decision.
“Conditions in that sector have broadly improved since early March, and the U.S banking system is sound and resilient,” he said in a statement prior to a subsequent press conference.
“We will continue to monitor conditions in this sector. We are committed to learning the right lessons from this episode and will work to prevent events like these from happening again.”
US Regional Bank Stocks After Hours:
1. PacWest, $PACW: -60%
2. Western Alliance, $WAL: -30%
3. Metropolitan Bank, $MCB: -20%
4. Valley National, $VLY: -15%
5. HomeStreet, $HMST: -11%
6. Zions Bank, $ZION: -10%
7. KeyCorp, $KEY: -8%
8. Citizens Financial, $CFG: -5%…
— The Kobeissi Letter (@KobeissiLetter) May 3, 2023
Others were far from convinced, however.
Arthur Hayes, former CEO of derivatives exchange BitMEX, revealed that he was already hunting for failing regional banks. Markets, he argued, could depend on the next move by either Powell or Treasury Secretary, Janet Yellen.
“You never know what is the trigger that causes Yellen or Powell to…
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