Bitcoin Hovers Below $29,000 Amid US Regional Bank Stock Crash and Latest Fed Rate Hike

Bitcoin (BTC) is hovering below the $29,000 level as regional bank stocks in the US crash and the Federal Reserve announces new rate hikes.

New data from the KBW Nasdaq Bank Index, which is designed to keep track of the performance of leading banks in the US, reveals that bank stocks have sharply declined since February and have dropped to a point they haven’t been in since late 2020.

According to Charlie Bilello, the chief market strategist for financial services company Creative Planning, the issues aren’t going away as many regional bank stocks have plummeted this week.

“The regional bank problems aren’t going away. This week…
PacWest (PACW): -67%
HomeStreet (HMST): -48%
First Horizon (FHN): -47%
Metropolitan Bank (MCB): -40%
First Foundation (FFWM): -35%
Western Alliance (WAL): -34%
Comerica (CMA): -25%
WesBanco (WSBC): -25%
Zions (ZION): -25%”

Furthermore, The Federal Reserve issued a new press release yesterday announcing further interest rate hikes in its continued battle against inflation.

“The US banking system is sound and resilient. Tighter credit conditions for households and businesses are likely to weigh on economic activity, hiring, and inflation. The extent of these effects remains uncertain. The Committee remains highly attentive to inflation risks.

The Committee seeks to achieve maximum employment and inflation at the rate of 2% over the longer run. In support of these goals, the Committee decided to raise the target range for the federal funds rate to 5 to 5.25%.”

BTC is trading for $28,904 at time of writing, a 2.1% gain on the day but a 6.7% decrease from its 30-day high of $30,979.

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