• Regional banks have seen drastic losses and some have been paused due to high volatility.
• Bitcoin has, however, risen 2% on the same day.
• Analysts are looking at how the markets will react to tomorrow’s FOMC meeting in terms of a potential rate hike and its impact on Bitcoin.
Regional Banks See Losses
Several regional bank stocks were halted due to volatility on May 2 after dropping more than 25%. The KBW Nasdaq Regional Banking Index is down a further 4% today, bringing it down -26% for the year so far. Major banks such as PacWest, Metropolitan Bank, Western Alliance, HomeStreet, Zions and First Foundation are all seeing significant losses of up to 29%, 27%, 25%, 16%, 11% and 10% respectively. Comerica is also down 9%, while Keycorp is down 8%.
Bitcoin Up Despite Market Condition
Despite market conditions being unfavorable for regional banks, Bitcoin has seen an increase of 2% on the same day. Analyst James Van Straten believes this could be due to Bitcoin’s capability to surmount any existing headwinds or challenges that may arise in the crypto market.
Rate Hike Impact On Bitcoin
With 94% probability that there will be a rate hike tomorrow during FOMC meeting mentioned by analysts from CryptoSlate; it will be interesting to see what effect this will have on Bitcoin prices. Will there be another bear market rally or could this potentially lead to miner capitulation?
Comparing Performance To Previous Cycles
How does Bitcoin’s bear market rally performance compare with previous cycles? Are there any trends that can be identified? Can Sharpe Ratio indicate which cryptocurrency is best suited for investment? These are all questions investors should look into when considering their next move.
Conclusion
Overall, despite regional banks facing major losses and some even being paused due to volatility; Bitcoin still managed to rise 2%. Analysts are now focusing their attention towards tomorrow’s FOMC meeting in regards of a possible rate hike and its effects on the cryptocurrency markets. It remains unclear if we’re heading towards another miner capitulation or not; but comparing performance against previous cycles could provide valuable insight into potential trends investors should watch out for when making their next moves.