The price of Bitcoin (BTC) has pulled back to $28,000 U.S. as the crisis among regional banks in America eases.
Bitcoin’s price fell 4% to start May, according to data from Coin Metrics. The price of cryptocurrency Ethereum (ETH) has also declined 4% to 1,828.81 U.S. per digital token.
The retreat among cryptocurrencies comes as traders and investors bet that the failure of First Republic Bank (FRC) at the end of April ends the banking crisis that has seen three regional lenders in America collapse since the start of March.
Turmoil in the banking sector has been a big catalyst for Bitcoin and other cryptocurrencies in recent months.
Bitcoin, the largest cryptocurrency by market capitalization, had rallied during the last week of April as troubles at First Republic Bank came into public view.
April was the first time in two years that Bitcoin’s price rose over four consecutive months.
Despite the current pullback, Bitcoin’s price remains up 70% on the year. Last December, Bitcoin was trading below $16,000 U.S.
Ethereum, the second biggest cryptocurrency, is up 53% so far in 2023.
