Bitcoin near $ 28,000 | coindesk JAPAN | Coindesk Japan

Bitcoin (BTC) started May below $28,000. The downward spiral that began on Thursday as U.S. regulators prepared for the collapse of First Republic Bank continued.

Bitcoin fell more than 5% in 24 hours, at one point near $27,800, according to CoinDesk data. However, when the market opened and it was reported that JP Morgan Chase, a major US bank, would buy First Republic Bank’s deposits and assets, it recovered to $ 28,000 (around 9:15 Japan time on the 2nd, 2 around $8,010).

Edward Moya, senior market analyst at Oanda, said the swift response to the First Republic bank failure shows the banking sector is well prepared to deal with this type of crisis. wrote that Wall Street may have convinced itself that widespread banking risk had been “cleared off the table.”

The failure of San Francisco-based First Republic Bank follows Silvergate Bank, Silicon Valley Bank and Signature Bank. Four banks have failed in the last two months.

Ethereum (ETH) has fallen more than 4% along with Bitcoin, hitting around $1,813 in the afternoon of the 1st.

The stock market also fell. The S&P 500 fell 0.04%, while the Dow Jones Industrial Average and Nasdaq fell 0.1%.

The market is paying attention to the US Federal Open Market Committee (FOMC) from the 2nd. A 0.25% rate hike is already priced in. FedWatch at the Chicago Mercantile Exchange (CME) puts the probability of a 0.25% rate hike at over 94%.

Some analysts expect the FOMC’s decision to raise interest rates could trigger price volatility in crypto assets.

Analysts at Blockware Solutions, a bitcoin mining equipment and hosting provider, said that BTC has strong resistance between $30,000 and $31,000, adding, “The FOMC policy decision will determine the current strength of BTC. It makes sense to think about it,” he wrote in the April 28 newsletter.

｜Translation: coindesk JAPAN
｜Editing: Takayuki Masuda
| Image: CoinDesk Indices
｜Original: Bitcoin Drops Below $28K; JPMorgan Takes Over Embattled First Republic Bank