Shares of American banks reacted by falling to the speech of the head of the US Federal Reserve Jerome Powell, who on Wednesday, May 3, tried to calm the financial markets.
Michael Van de Poppe believes that such movements on the stock exchanges can provoke another banking crisis, and as a result, an increase in the value of bitcoin. Van De Popp emphasizes that although Powell tries to convince everyone of the reliability and stability of the banking system, few people believed him.
Within hours of the official’s speech, PacWest Bancorp’s shares fell nearly 58% and Western Alliance’s shares fell more than 28%. Also outsiders of the market were such credit institutions as: Comerica (-10.06%), Zion Bancorp (-9.71%), KeyCorp (-6.93%).
Van De Popp, using a 30-minute bitcoin chart, showed that while banks were falling in price, the first cryptocurrency was growing. In addition, rose gold. According to the analyst, the simultaneous growth of BTC and the noble metal is positive for the crypto market.
According to the founder of EightGlobal, among bankers there is growing uncertainty and distrust of the statements of government officials. Such sentiments could lead to even more problems in traditional markets. The analyst believes that the picture of events does not bode well for the US banking industry: if a solution is not found in the near future, the consequences of the crisis could be devastating.
The cryptocurrency market reacted with restraint to the collapse of US regional banks.
Source: Bits
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