Bitcoin Rises as Latest Teetering U.S. Bank Sends Traders to Crypto Haven

The banking crisis doesn’t appear to be over yet as PacWest Bancorp (PACW) dives more than 50% in after hours action on Wednesday following a Bloomberg report that the lender is mulling a range of strategic options.

Bitcoin (BTC) is gaining on the news, rising more than 2% to $28,900 at press time.

The news on PacWest comes only days after First Republic Bank (FRC) was taken over by a combination of the Federal Deposit Insurance Corporation (FDIC) and JPMorgan (JPM). In a Monday morning call following the takeover, JPMorgan CEO Jamie Dimon said, «I think the banking system is very stable … This part of the crisis is over.»

Federal Reserve Chairman Jerome Powell had similar thoughts today. Speaking less than three hours ago following the central bank’s 10th-consecutive rate hike, Powell declared the banking system «sound and resilient.»

Other regional banks moving lower on Thursday evening include Western Alliance Bancorp (WAL), down 28% and Metropolitan Bank (MCB), down 19%.

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