Bitcoin price climbs by 20 percent overnight: US banks expect profits to decline by 40 percent

Bitcoin quickly rebounded 20 percent. The American banks expect heavy losses in their quarterly reports.

Bitcoin ( BTC ) rose 20 percent overnight on Jan. 12. The cryptocurrency quickly rebounded from the 27 percent decline it had seen just days earlier.

The overall cryptocurrency market followed suit on Tuesday.

Over $ 150 billion returned to total market capitalization on the same day

Bitcoin price rose from $ 30,468 to $ 36,633 in just over 15 hours by Tuesday morning. This corresponds to an overnight increase of 20.2 percent. This made it possible to recoup the majority of the losses that the coin had suffered over the past weekend when the BTC rate plummeted from $ 41,880 to $ 30,468.

As Reuters reported on January 11th, the major banking institutions in the US hope to leave 2020 behind when the fourth quarter figures are released on Friday. Financial analysts expect a sharp contrast between Bitcoin’s recent gains and the development of the traditional banking sector.

Some people expect losses of over 40 percent

Citigroup Inc. is expected to decline 42 percent in the last three months of last year. Analysts predict a similar decline of around 39 percent for Wells Fargo & Co. Next week, Bank of America Corp will publish its quarterly report, which is expected to show a 33 percent decline in profits.

However, not every bank suffered equally at the end of 2020. JPMorgan Chase & Co should be able to show a less severe decline of about 5 percent. Two big banks are expected to be able to present positive figures for the final quarter: Morgan Stanley expects a profit of 1 percent. Goldman Sachs Group Inc.’s quarterly profit could be 43 percent higher due to a strong performance in capital market services.

Despite the obvious differences in the banking sector, Barclays analyst Jason Goldberg says that most companies would like to get out of 2020 quickly and remain optimistic about the year ahead.

„You can see the fourth quarter as a kind of transition quarter in which some of the challenges of 2020 are now overcome and you can look forward to a better year 2021,“ said Goldberg.

Some bank stocks are up 35 percent since the US presidential election in November . News of a COVID-19 vaccine has rekindled the confidence of cautious investors.