Bitcoin Price News: Trading in several bank stocks was on Monday halted due to increased volatility in pre-market hours. This is leading to a renewed bullish momentum in the crypto market. The move came after these stocks saw massive selloff over contagion effect from the collapse of Silicon Valley Bank. Shares of the First Republic Bank fell around 66% even as efforts are on to restore liquidity in the bank. Same was the case with the shares of banks like PacWest Bancorp and Zions Bancorporation, before trading was halted by exchanges. Meanwhile, the Bitcoin price continues to rise in reaction to the turmoil in the US financial sector.
Also Read: Ripple Funds Stuck In Collapsed Silicon Valley Bank? Garlinghouse Replies
Earlier, CoinGape reported that HSBC Holdings had acquired the British subsidiary of Silicon Valley Bank. The move was facilitated by the assistance of the UK government and the Bank of England.
US Bank Stocks Continue To Face The Heat
The KBW Nasdaq Bank Index, which helps track performance of the leading US banks, fell sharply on Monday. The Index is down by around 13% on the day, while it lost a value of 25% compared to five days ago. The same was felt in the European markets as the EURO STOXX Banks Index fell nearly 7%. With the fears of further contagion from SVB collapse spreading, US stock indexes fell.
The failure of Silicon Valley Bank and Signature Bank in the last few days led to a catastrophe in the US financial sector last week. Due to the high volatility, shares of Metropolitan Bank, Regions Financial Corporation, East West Bancorp and Western Alliance Bancorporation were halted for trading, as per Nasdaq’s current trading halts portal. Meanwhile, the S&P 500 Index is down by around 0.33%.
Also Read: Shiba Inu (SHIB), Dogecoin (DOGE) Price Recovers As Bitcoin Price Regains $22k
In a latest, US President Joe Biden stepped in to declare ‘safety’ within the US banking system. He promised stiffer bank regulation in the context of the bank crisis.
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