Crypto, Related Stocks Soar as First Republic Bank Falls to All-time Low

Crypto assets and stocks surge as First Republic Bank falls 35% to all-time low

article-image

Wit Olszewski/Shutterstock modified by Blockworks

share

Cryptocurrencies and related stocks soared Wednesday afternoon in New York as First Republic Bank shares hit all-time lows on reports the US government intends to stay out of the banking crisis. 

Bitcoin and ether gained as much as 9% and 6%, respectively, Wednesday before paring gains later in the day. Both tokens flirted with key resistance levels; $30,000 for BTC and $2,000 for ETH.

Stocks stayed in the green as well, with tech and crypto companies leading the rally. Crypto exchange Coinbase was up 3% at time of publication, while miner Hut 8 and business intelligence firm MicroStrategy surged 10% and 8%, respectively. Big Tech shares also swelled as Meta gained around 2% and Amazon earned close to 3%. 

Wednesday’s run comes as First Republic Bank, which lost $72 billion in deposits during the first quarter of the year, fell as much as 35% to a new low of $4.78 per share. The sell-off was triggered by reports that the US government would not be stepping in to assist the struggling bank. 

Stocks have historically been lower throughout the banking crisis, particularly following the most recent earnings season, plus an upcoming rate decision from the Federal Reserve has traders proceeding with caution. But it could be the perfect storm for crypto, analysts say. 

“A pick-up in market uncertainty should ironically be positive for risk assets as investors position for a monetary and fiscal solution that involves the easing of liquidity,” Noelle Acheson, author of Crypto is Macro Now and former head of market insights at Genesis, said. “However, there is a risk that expectations get ahead of themselves on this front (or, should I say even more ahead of themselves than usual?). This sets up an interesting situation for bitcoin.”

With another traditional financial institution on the decline, bitcoin’s investment thesis as an alternative to the traditional banking system is poised to shine right now, Acheson added. 

But, others question bitcoin’s current generally-accepted status as a ‘risk asset.’

“After the way that BTC spot prices and the associated volatility surface traded in 2022, it was nearly a foregone conclusion that BTC traded as a risk asset with the potential for violent crashes, similar to the behavior seen in equities,” analysts from Amberdata wrote in a report Wednesday. “Reflecting on the spot/vol activity witnessed in Q1 2023 we can quickly say that 2022 activity isn’t a precedent set in stone. So far, Q1 2023 has completely flipped 2022 on its head.”


Get the news in your inbox. Explore Blockworks newsletters:

Tags

Decoding crypto and the markets. Daily, with Byron Gilliam.

Upcoming Events

Old Billingsgate

Mon - Wed, October 13 - 15, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

recent research

Flashnote Template (41).png

Research

We believe that few tokens at the application layer are diverging more from fundamentals than ZORA. Its fully-diluted P/S sits at 90x, pricing significant growth despite a consistent decline in weekly revenues since late July. We foresee an 80% decrease in protocol net margins due to a recent update to the fee structure that reduces trading fees from 3% to 1%, while boosting creators’ portion of the fee split. ZORA’s supply overhang also represents a near-term headwind, with 45% of ZORA’s supply (4.5B tokens or $350M at current prices) earmarked for the team & investors beginning to unlock on October 23, 2025 (36-month linear vesting schedule).

article-image

Insiders have the best information — markets should be willing to pay for it

article-image

The CFTC-regulated exchange is opening doors to crypto builders and traders through grants, partnerships, and new deposit options

by Blockworks /
article-image

DFS tells banking organizations to integrate blockchain monitoring tools to curb money laundering and sanctions risks

by Blockworks /
article-image

New short and long-term priorities include L1 gas boosts, ZK-EVMs, privacy reads, and a lean, quantum-resistant Ethereum

by Blockworks /
article-image

The new stBTC token redistributes Bitcoin gas fees to users, creating liquid yield without inflation or lockups

by Blockworks /
article-image

The reserve will collect protocol revenues to back W token, alongside new yield and unlock schedule

by Blockworks /