Bitcoin’s price increases as traders turn to cryptocurrencies after a US bank’s uncertain status

Bloomberg reports that PacWest Bancorp, which is based in California, is considering different strategic choices.

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The banking crisis doesn’t seem to be ending soon. PacWest Bancorp’s stocks dropped by over 50% during after-hours trading on Wednesday, following a Bloomberg report. The report said that the bank, which is based in the US, is thinking about different ways to move forward.

At the time of writing, Bitcoin (BTC) had gone up more than 2% to $28,900 due to this news.

Just a few days ago, the US government took control of First Republic Bank and sold it to JPMorgan. This happened after the bank failed to keep enough money in reserve to pay back all of its customers. On Monday, JPMorgan’s CEO said that he thinks the banking system is now stable and that the worst part of the crisis is over. However, the news about PacWest Bancorp suggests that there may still be problems in the banking industry.

After a recent meeting, the head of the US Federal Reserve, Jerome Powell, said that he thinks the banking system is doing well and can handle any problems that might come up. This statement came after the Federal Reserve raised interest rates for the 10th time in a row.

On Thursday, the stocks of some other regional banks went down as well. For example, Western Alliance Bancorp dropped by 28%, and Metropolitan Bank dropped by 19%.

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