HomeNewsBitcoin's Shine Intensifies as PacWest Stocks Take a Hit

Bitcoin’s Shine Intensifies as PacWest Stocks Take a Hit

- Advertisement -
  • PacWest Bank’s stock has taken a harsh 27% plunge amid rumors of a potential takeover by Banc of California.
  • The current banking instability may cause a shift of investors’ interest towards Bitcoin, bringing a new dynamic to the financial market.

In a shocking development that harks back to the U.S regional banking crisis, PacWest Bank’s shares have undergone a precipitous 27% tumble. The plunge comes on the heels of speculation surrounding a potential acquisition by Banc of California, a turn of events that has not just shaken the banking sector, but also casts an uncertain shadow over the future of cryptocurrencies.

An Echo of the Banking Crisis

The abrupt halt in PacWest’s trading and the subsequent stock crash has rekindled fears of a banking crisis similar to the one experienced earlier this year. During that period, an atmosphere of trepidation led to customers hastily withdrawing deposits, triggering the downfall of financial stalwarts such as Silicon Valley Bank, Signature Bank, and First Republic Bank.

- Advertisement -

This current turmoil brings with it a pressing question: could this turbulence have a ripple effect on the cryptocurrency market, particularly Bitcoin?

The Dow Jones U.S. Banks Index slipped by 1.28% in light of the PacWest news. On the flip side, there’s mounting curiosity over how the Bitcoin price could be impacted should the apprehension surrounding the potential bank merger intensify.

The market is additionally on tenterhooks awaiting the decision of the U.S Federal Reserve regarding an anticipated 25 bps interest rate hike. Furthermore, traders are keenly watching for indications of future rate hikes in the upcoming press conference of Fed Chair Jerome Powell.

- Advertisement -

>> Buy Bitcoin quickly and securely with PayPal, credit card or bank transfer at eToro with low fees and deposit protection. Get started with BTC now. Visit Website <<

A Potential Takeover and its Implications

As reported by The Wall Street Journal, advanced talks are in progress regarding Banc of California’s purchase of PacWest Bank, with an expected completion by Tuesday’s close. In a noteworthy twist, the Banc of California’s stock price has witnessed an 11% uplift amidst this brewing storm.

PacWest, significantly impacted by the previous regional banking crisis, was once perceived as the next potential victim following the collapse of three regional banks. In the backdrop of this crisis, US Treasury Secretary Janet Yellen in May 2023 cautioned about the need for mid-sized banks to merge, aiming to bolster the financial health of these institutions.

Today’s scenario presents an intriguing dichotomy: while the banking world experiences shocks and shifts, could the unwavering digital realm of Bitcoin provide a safe haven for worried investors? Only time will tell.


Best Crypto Exchange for Everyone:

  • Invest in Bitcoin (BTC) and 70+ cryptocurrencies and 3,000+ other assets.
  • 0% commission on stocks – buy in bulk or just a fraction from as little as $10.
  • Copy top-performing traders in real time, automatically.
  • Regulated by financial authorities including FAC and FINRA.

2.8 Million Users

Get Started


- Advertisement -
ETHNews does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products, or other materials on this page. Readers should do their own research before taking any actions related to cryptocurrencies. ETHNews is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods, or services mentioned.
Jane Smith
Jane Smith
As a Bitcoin Journalist, I am dedicated to reporting the latest developments in cryptocurrency, with a particular focus on Bitcoin. Through extensive research and interviews with industry experts, I provide accurate and up-to-date information on the ever-evolving world of cryptocurrencies. My goal is to help readers stay informed and make informed decisions regarding their investments in this rapidly changing field.
- Advertisment -spot_img