While Wall Street giants JP Morgan and Citigroup posted higher first-quarter earnings, their overall stock prices fell, the Wall Street Journal reported.
The publication reports that income from trading in JP Morgan shares increased by 26% to $2 billion, and net profit grew by 35%. Conglomerate Citigroup increased revenue from the sale of shares by 38% to $1.1 billion, with a 13% increase in net profit. However, both banks' share prices fell on Friday, April 13.
According to Bloomberg Markets, JP Morgan's share price is now around $110, down 2.7% from the market yesterday.
Citigroup's share price is currently around $71, slightly more than a 1.5% decline.
Despite global banking company Wells Fargo's earnings rising 5% in the first quarter, the share price is down more than than 3% and was about $50 at the close of the exchange.
“The recent tax reform could be useful for banks and should have helped stocks recover, but so far this has not happened,” said JP Morgan CFO Marianne Lake.
This is not the first fall in financial marketsince the beginning of the year. Analysts have long noted the relationship between traditional financial markets and the crypto market. The fall in stock prices on Wall Street may be a direct result of the rise in cryptocurrency prices and the mini-rally in the crypto market late last week. With the beginning of the second quarter, the crypto market began to recover and regain its previous positions. The tough first quarter for Bitcoin (BTC) and Ethereum (ETH) appears to be over. The founder of investment firm DoubleLine Capital said BTC has become the "new" stock market indicator as the "leading horse" of risky assets.
The digital currency market has since seen gains in the second quarter, with the price of Bitcoin rising by more than $1,000 within 30 minutes on April 12. Cryptocurrency markets continue to grow across the board. BTC has surpassed $8,000 and ETH is approaching $500.
You May Also Like
Hard forks hinder mass adoption of cryptocurrencies
According to a new study, hard forks pose a threat to the mass adoption of cryptocurrencies. This is because forking the blockchain of a particular cryptocurrency results in a loss of trust. In addition, such ramifications reduce user confidence in the ability of the primary cryptocurrency to continue to develop as a medium of exchange, the study says. Interestingly, 50 new hard forks are predicted to appear this year.
New platform from Cryptanite and Codius
Cryptanite Blockchain Technologies Corp. and open source platform Codius today announced the joint launch of a new hosting platform. Cryptanite, registered in both Canada and Germany, is one of the first to use Codius' hosting capabilities.
