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

Javits Center North | 445 11th Ave

Tues - Thurs, March 24 - 26, 2026

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.

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

Unlocked by Template.png

Research

The march toward an interoperable and onchain-by-default internet depends on reliable messaging and value transfer across heterogeneous domains. Crosschain protocols now process >$1.3T in combined annual transfer volume and secure tens of millions of user interactions, yet no single design dominates.

article-image

As the shutdown enters its second week, sources say the Senate Banking Committee looks to move ahead with a market structure bill markup

article-image

The collaboration expands Ripple’s Middle East footprint, supporting Bahrain’s blockchain adoption and future rollout of Ripple USD

by Blockworks /
article-image

The medical device firm will manage its $400 million Solana holdings using Coinbase Prime infrastructure to bolster its digital asset strategy

by Blockworks /
article-image

The deal gives PayPay a 40% stake in Binance Japan, linking digital assets with Japan’s largest mobile payment network

by Blockworks /
article-image

Citigroup’s venture arm backs BVNK to expand stablecoin payments infrastructure amid growing US regulatory clarity

by Blockworks /
article-image

The partnership integrates Deutsche Bank’s payment rails with Bullish’s regulated exchange, streamlining fiat operations for institutional traders

by Blockworks /