Bitcoin, U.S. Stock Futures Erase Early Gains as First Republic Bank Tanks 50% in Pre-Market Trading

Risk assets erased early gains during the European hours as shares in San Francisco-based First Republic bank nosedived in pre-market trading, reflecting continued investor angst over the banking sector’s health.

Bitcoin pulled back to $22,000, having nearly tested the 50-day simple moving average at $22,900 during the Asian hours.

Futures tied to the S&P 500 fell from 3,971 to 3,887, reversing over a 1.5% gain. European stocks fell over 2%, with banking shares leading the way lower.

First Republic Bank fell nearly 60% in pre-market trading even as the bank said it secured additional funding through JP Morgan, giving it access to $70 billion in liquid funds.

The German two-year government bond yield suffered the largest drop on record, signifying increased safe-haven buying and investors trimming expectations for European Central Bank rate hikes. Goldman Sachs revoked its forecast for next week’s Federal Reserve rate hike, citing stress in the banking sector.

U.S. authorities announced emergency measures on Sunday to boost confidence in the baking system after the failure of startups friendly Silicon Valley Bank.

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