• JP Morgan has taken over First Republic Bank, further monopolizing the banking industry.
• The Federal Reserve is determined to raise interest rates at its meeting this Wednesday.
• Bitcoin’s price is currently in a critical position and could potentially pull back to $25,000.
First Republic Bank Taken Over by JP Morgan
JP Morgan has taken over First Republic Bank in the second biggest bank failure in US history. This purchase will give JP Morgan 84 extra banking offices across 8 states, further monopolizing the banking industry. Jamie Dimon, CEO of JPMC, said that this purchase would “modestly benefit” the firm.
Federal Reserve Will Raise Interest Rates
The Federal Reserve is still determined to raise interest rates by 25 basis points at its FOMC meeting on Wednesday. Arthur Hayes, former CEO of BitMEX believes that if more banks fail before then, the Fed will be forced to backstop a larger proportion of banks with printed money – which he believes could lead Bitcoin to reach $1 million as public trust in the banking system dwindles.
Bitcoin Price At Critical Level
Bitcoin’s price is currently at $28,560 after drawing back from an all-time high of $29,230 last week and closing at around $29K this month. If it fails to maintain its trend it could pull back as low as $25K or even lower if it loses support from its 200-week moving average ($22K).
Further Bank Failures Could Lead To Recession
As more banks face similar struggles to First Republic Bank they too may be allowed to be bought up by bigger institutions leading to further monopoly of the industry and potential recession resulting from an excessive rise in interest rates by The Federal Reserve..
Jamie Dimon’s Modest Benefit
Despite all these issues Jamie Dimon sees a modest benefit for his company coming out of this deal with First Republic Bank and remains confident that their acquisition will only strengthen their hold on the banking industry while providing them with new resources and opportunities for growth.