• JP Morgan Bank has taken over First Republic Bank, the 14th biggest bank in the US.
• The Federal Reserve is expected to raise interest rates again this Wednesday.
• Bitcoin is currently facing obstacles with a price of $28,560 after a weekly and monthly draw back.
JP Morgan Purchases First Republic Bank
JP Morgan, the largest US bank, has purchased First Republic Bank, the 14th biggest bank in the US. The purchase will add 84 banking offices across 8 states to JP Morgan’s network and will modestly benefit their firm according to CEO Jamie Dimon.
Federal Reserve On Course To Raise Interest Rates
The Federal Reserve is determined to raise interest rates by another 25 basis points at its upcoming FOMC meeting on Wednesday. According to CME’s Fedwatch tool, there is an 83% likelihood of this rate increase occurring. Arthur Hayes, former CEO of BitMEX believes that the Federal Reserve may be forced into a situation where they need to turn on the printers again in order to backstop more of the US banks‘ balance sheets and that BTC could reach as high as $1 million USD as a result.
Bitcoin Price At Critical Point
The current Bitcoin price stands at $28,560 after experiencing weekly and monthly losses that brought it down as low as $28,250 before rebounding slightly. If BTC loses this uptrend support it could potentially pull back all the way down to its strong support around $25,000 or possibly even below at its 200 week moving average which currently sits just under $22,000.
Public Loses Trust In Banking System
If the Federal Reserve continues with its plan of raising interest rates despite warnings from industry experts it could lead to a recession which would drastically reduce public trust in traditional banking systems – something which Bitcoin can take advantage of given its decentralized nature and secure blockchain technology.
Conclusion
This news signals yet another step towards further monopolizing of banking institutions by bigger companies such as JP Morgan while also highlighting how critically important Bitcoin’s current state is for those who are looking for an alternative financial system outside of traditional banking structures.