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On Monday alone, $90 billion in stock market value was wiped from major U.S. banks. Stock chatter on social media picked up by LikeFolio’s consumer insights machine has hinted which banks would fail — so far.
It started with unusual upticks around Silicon Valley Bank parent company SVB Financial Group (SIVB) early last week… just before the stock went into a free-fall from $266.86 to $100 in just one day.
Then we saw a similar surge in mentions for Signature Bank (SBNY), the New York-based real estate lender that became the next bank to collapse, dropping to zero and entering FDIC receivership by Sunday.
Now we’re picking up similarly unusual chatter around two other bank stocks that you need to be aware of…
Because it has us asking: Will these names join SIVB and SBNY in the bank graveyard?
Bank Watch: SIVB, SBNY… Could FRC and KEY Be Next?
Right now, we’re keeping close tabs on First Republic Bank (FRC) and KeyCorp (KEY), both of which have seen their stock prices fall dramatically on investor concerns about their viability.
As you can see from the chart below, FRC and KEY are experiencing upticks in daily social media mentions, following an eerily similar trend to SIVB and SBNY:
If stock chatter continues to be a leading indicator, we wouldn’t be surprised to see these two banks go under as well.
LikeFolio data shows social media mentions of consumers withdrawing their money from banks revving higher over the past week, rising 63% from last year’s levels and 55% from last quarter:
As banks go bust, cryptocurrencies are getting an unexpected boost. In one week, the price of Bitcoin (BTC) has gained more than 20%.
And more broadly, social media mentions around Decentralized Finance (DeFi) are looking red-hot — up 778% from last year and an eye-popping 836% from last quarter:
As a leader in the crypto space, and the only publicly traded cryptocurrency exchange, could Coinbase (COIN) turn out to be a long-term winner from this shock to the system?
COIN shares are up more than 10% over the last five days — and you can bet we’re watching this as an investment opportunity.
We’ll continue to monitor both consumer and investor reactions to the banking sector in real time.
For now, make sure you check out LikeFolio Co-Founder Andy Swan’s segment on the TD Ameritrade Network from earlier this week for more in-depth coverage of the banking turmoil: