Bitcoin (BTC) is hovering below the $29,000 level as US regional bank stocks crash and the Federal Reserve announces new rate hikes.
New data from the KBW Nasdaq Bank Index, which is designed to track the performance of leading US banks, reveals that bank stocks have fallen sharply since February and have fallen to a point where they have not been since the end of 2020.
According to Charlie Bilello, chief market strategist at financial services firm Creative Planning, the troubles won’t go away, as many regional banking stocks have. plummeted this week.
“The regional banking problems are not going away. This week…
PacWest (PACW): -67%
Home Street (HMST): -48%
First Horizon (FHN): -47%
Metropolitan Bank (MCB): -40%
First Foundation (FFWM): -35%
Western Alliance (WAL): -34%
Comerica (CMA): -25%
Wes Banco (WSBC): -25%
Zions (ZION): -25%”
In addition, the Federal Reserve issued a new press release yesterday announced further rate hikes in its ongoing battle against inflation.
“The US banking system is healthy and resilient. Tighter credit conditions for households and businesses are likely to weigh on economic activity, hiring and inflation. The magnitude of these effects remains uncertain. The Committee remains very alert to inflation risks.
The Committee aims for maximum employment and inflation of 2% in the longer term. In support of these goals, the commission has decided to raise the target range for the federal funds rate to 5 to 5.25%.”
BTC is trading at $28,904 at the time of writing, up 2.1% on the day but down 6.7% from its 30-day high of $30,979.
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Featured image: Shutterstock/NextMarsMedia/Sensvector
