Philadelphia-based Republic First Bank has been shut down by US regulators, marking the first bank failure of 2024. This development has caused a division among those involved in the cryptocurrency trade, with Bitcoin, Ether, and altcoins experiencing a slight boost in response.
Pillage Capital, a crypto trader, believes that the collapse of Republic First Bank is significant, as bank failures provide a compelling narrative for the cryptocurrency industry. In a post, Zesh Marius Martocsan, the CEO of Pillage Capital, stated that on April 26, the Pennsylvania Department of Banking and Securities took control of Republic First Bank. Following this, the FDIC was appointed as the receiver of the failed bank. According to a statement from the FDIC dated April 26, the newly established federal bank will assume responsibility for almost all of the deposits and assets of Republic Bank.
As of January 31, Republic First Bank had approximately $6 billion in assets and nearly $4 billion in total deposits. Additionally, Fulton Bank has recently completed its integration process, whether through a merger or acquisition, and will establish its presence in the region by the following week.
In 2023, there were rumors of a possible bank run, which caused a temporary dip in BTC’s price. However, the impact was minimal. In the past hour, Bitcoin has declined by 1.16% and is currently valued at $62,715 on CoinMarketCap. Ether has also experienced a 0.58% decrease and is currently trading at $3,095. Altcoins have seen a more significant decline, with Dogecoin falling by 2.88% and Solana experiencing a 1.79% drop during the same period.
This news of Republic First Bank’s failure comes at a challenging time for the banking industry, as the FDIC reported five banking failures in the US in 2023. It is important to note that Republic First Bank has no affiliation with First Republic. Initially, JPMorgan Slate attempted to revive the bank but ultimately acquired it in May 2023.
In March 2023, the Federal Reserve made the decision to close down Signature Bank, citing concerns about systemic risk and its impact on US economic stability and growth.
This event follows the recent closure of Silicon Valley due to regulatory oversight. A week prior, Silvergate Bank, which facilitated transactions in the crypto industry, announced its closure and voluntary liquidation.
