After First Republic Bank (FRC) shares dropped more than 50% on April 25, concerns over a potential impending bank failure caused the price of Bitcoin (BTC) to jump more than 3% in the previous day.
The price of Bitcoin increased immediately after Fox News Business Reporter Charles Gasperino broke the news that bankers working with First Republic Bank anticipate the institution going into government receivership, claims the Head of Research at Australian crypto education platform Collective Shift.
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Receivership is a strategy that helps troubled companies avoid bankruptcy while allowing creditors to recover money that may be at risk of default.
The correlation between Bitcoin and the S&P 500 may be decreasing, according to data from crypto analytics company Santiment, as the concept that Bitcoin is a safe haven during the banking crisis has once again gained traction.