• First Republic Bank has failed and has been taken over by JP Morgan, leading to a potential monopolisation of the industry.
• The Federal Reserve is still planning on raising interest rates at its FOMC meeting this Wednesday.
• Bitcoin is currently facing some of its own obstacles, with prices at $28,560 and potentially pulling back to the support at around $25,000.
First Republic Bank Fails
First Republic bank, which was the 14th biggest bank in the US, has gone into receivership and has been bought by JP Morgan Bank. Already the biggest bank in the US, JP Morgan will now have an extra 84 banking offices across 8 States. Jamie Dimon, CEO of JP Morgan Chase said that his bank’s purchase of First Republic Bank would “modestly benefit” the firm.
Other Banks in Trouble
As more banks are also facing similar struggles to First Republic Bank, if they are not considered to be “systemically important” they will also be allowed to be gobbled up by the bigger banking institutions, leading to further monopoly of the industry. Arthur Hayes, former CEO of BitMEX tweeted that in his view the Federal Reserve would be obliged to turn on the printers again in order to backstop a larger proportion of the US banks.
Federal Reserve Sticking To Strategy
Despite these setbacks for smaller banks in America, as news of this latest failure hits headlines; The Federal Reserve says that it is still doggedly on course to raise interest rates another 25 basis points at its FOMC meeting which convenes this Wednesday according to CME’s Fedwatch tool which puts likelihood for this 0.25% raise at 83%.
Bitcoin At Critical Level
Bitcoin is currently facing some of its own obstacles; with a price currently at $28,560 after a weekly and monthly close that saw it draw back to $29,230 before recovering slightly to $28500; If BTC loses this trend it can potentially pull back down as far as extremely strong support around $25000 – with 200 week moving average being last solid line defence; Currently just under 22000 – If Federal Reserve breaks economy & forces US into recession with insistence on raising interest rates public could lose further trust in banking system – This where Bitcoin can truly step up & gain traction from investors/public alike!
Arthur Hayes Predicts BTC Will Reach 1 Million
Arthur Hayes continues maintain that BTC will go all way up 1 million dollars – if Fed forces US into recession & causes people lose trust banking system – Bitcoin could become attractive option for investors/public alike & reach heights previously thought unimaginable!