News of the Federal Deposit Insurance Corporation (FDIC) reopening Republic First Bank’s 32 locations under Fulton Bank from Saturday (April 27) has sent ripples through the cryptocurrency market. Bitcoin, Ether, and several alternative cryptocurrencies have seen a slight dip, sparking debate within the cryptocurrency community.
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Following the Pennsylvania Department of Banking and Securities’ seizure of Republic First on Friday (April 26), the FDIC stepped in as the receiver. In a statement issued on the same day, the FDIC announced its acquisition of all of Republic Bank’s assets and the majority of its deposits.
Recent hours have seen Bitcoin and Ether experience a slight decline, trading at $62,715 and $3,095 respectively, according to CoinMarketCap. Altcoins, however, have seen a more significant drop, with Dogecoin falling by 2.88% and Solana’s value decreasing by 1.79%.
Despite the challenges, the banking sector demonstrated resilience in 2023, with five banks in the United States facing closure, according to data provided by FDIC.
JPMorgan Chase & Co. purchased First Republic Bank in May of 2023, following the failure of early efforts to recover the bank. First Republic Bank is an independent corporation that is not affiliated with Republic First.
Because of the systemic risk that it posed to the economy of the United States, the Federal Reserve made the announcement in March 2023 that Signature Bank would be shut down. Nevertheless, that is only the tip of the iceberg: the news came just a few days after the Silicon Valley Bank was given the order to quit operations. Another cryptocurrency-friendly financial institution, Silvergate Bank, made the announcement a week earlier that it would be closing its doors and entering a voluntary liquidation.
Who knows what’s next and what other changes are going to take us by storm? Share your thoughts on the current banking matter below and find out what others think about it!