Bank Crisis 2023 Part II? 

First Republic Bank’s stock price plunged again on Wednesday, as investors continued to await a potential rescue deal for the troubled regional bank. The stock was down by more than 23% on Wednesday, extending losses of nearly 50% on Tuesday. The stock has fallen more than 90% year-to-date and hit an all-time low on Wednesday, being halted multiple times for volatility.

The sell-off in First Republic’s stock comes amid growing concerns about the bank’s financial health. In recent months, First Republic has been hit by a number of challenges, including a sharp decline in deposits, a surge in loan losses, and a weakening economy. The bank has also been facing increased scrutiny from regulators.

In an effort to shore up its finances, First Republic has been exploring a number of options, including a sale of the bank or a merger with another financial institution. However, it is unclear if any of these options will be successful.

The uncertainty surrounding First Republic’s future has weighed heavily on the bank’s stock price, but has served as a catalyst for crypto prices once again. 

The Bitcoin market is still heavily shorted, indicating a lack of trust in the uptrend’s durability, according to trading suite Decentrader.

“We’ve got Open Interest increasing and Funding Rate dropping which shows that a lot of people are shorting this move,” Decentrader tweeted.

Open Interest is a measure of the total number of open futures contracts, while Funding Rate is the interest rate paid to longs by shorts. When Open Interest is increasing and Funding Rate is dropping, it suggests that more people are opening short positions than long positions.

This is a bearish sign for the Bitcoin market, as it suggests that there is more selling pressure than buying pressure. If the selling pressure continues, Bitcoin could break down below the $27,000 support level. However, if the buying pressure picks up, Bitcoin could break out above the $31,000 resistance level.