It's tough to tell honestly speaking. Sometimes, BTC rises whenever there are issues with traditional FIAT entities while it drops some other times. It reacts in unpredictable ways which is why it's considered extremely volatile.
If it does end up rising thanks to banks like First Republic Bank etc collapsing, that would be great for BTC HODLERS like me.
Right, but due to the inflation, Any traditional fiat entities that collapse always create a positive effect on Bitcoin because people became scared on fiat that result for rushing in to buy fiat while some crypto traders assumes that people will start selling their fiat in exchange for Bitcoin. I believe any news that involves collapse of fiat in general give confidence to Bitcoin investors to invest more.
It’s rare now that Bitcoin collapse together with fiat when there’s a bad news in fiat. Maybe people is now informed that Bitcoin is not affected by inflation and its the best alternative to avoid it.