Two more US banks might be in trouble
This is the trading chart of First Republic Bank:
Looks just like Silicon Valley Bank's share chart, doesn't it? PacWest Bancorp shares also dived in a similar way.
These things can become a self-fulfiling prophecy. Shareholder capital is part of the capital base of a bank. If your share price falls too much, you need to raise fresh funding from shareholders, or attract new depositors.
But any depositor who sees their bank's shares collapse like this, will pull their funds rather than deposit more. The bank then needs to sell assets to meet withdrawals, and if those assets are bonds with a paper loss because interest rates have risen, then selling crystalises those losses.
This will have knock-on effects. Any crypto business that has funds in these banks may find their money locked. Bank ETFs will lose value. Households and unrelated businesses will get caught in the cross-hairs.
Some individuals who lose money may find they have to sell their crypto to pay debts.
This is not good.