© Reuters
Despite the bearish sentiment dominating the stock markets, cryptocurrencies continue to shine as investors search for alternative options. Recently, PacWest Bancorp revealed that it was considering various alternatives, including a potential sale – a decision that sent the bank’s share value plummeting 55% before recovering at the end of the day.
The fall of PacWest Bancorp also affected other regional banks, with some of them registering declines of more than 25%. However, despite these setbacks in the banking sector, the Federal Reserve maintains that the system remains “sound and resilient”. The statement comes after a 25 basis point increase in the federal funds rate on May 3.
With mounting pressure within the banking sector expected to continue to influence interest rate hikes in upcoming meetings (currently estimated probability of 85%), borrowing costs may decline slightly following consecutive rate hikes over time. time.
Contrary to the uncertainty surrounding traditional financial institutions, bitcoin is nearing $30,000 per coin, while it is currently trading around $29,000. Along with the increase in the value of investments, social dominance indicators are on the rise, reflecting growing investor interest in cryptocurrencies as viable alternatives amid the current banking woes.
Remarkably, the Bitcoin network has welcomed nearly one million new users in the past ten days – a significant milestone considering that it typically takes two months to achieve such growth. The total number of users for March and April combined was surpassed in just a few days, with the overall figure now standing at 45.3 million.