US Banking Crisis Resurfaces, Bitcoin Price Forecasts Revisit Million-Dollar Mark
Summary:
The U.S. regional banking sector is facing a crisis, drawing attention back to Bitcoin (BTC) value. This comes nearly a year after several banks faced collapse. Amidst this, the New York Community Bancorp. (NYCB) has seen its stock value fall by 30% in five days. The Federal emergency loan program for regional banks is also expiring in a month. Arthur Hayes, former BitMEX CEO, has predicted a potential drop of BTC to $30,000 this March, followed by a quick recovery. Despite these potential macroeconomic triggers, Bitcoin has stayed stable within a defined daily range for over 150 days.
The U.S regional banking sector is facing a crisis that could impact Bitcoin (BTC) prices, putting million-dollar price marks back into focus. This comes nearly a year after a few banks, including the cryptocurrency-focused Signature Bank, faced collapse, while its buyer's value has dropped by 60% over the year. Some believe the situation is a harbinger of a second U.S banking crisis. The New York Community Bancorp. (NYCB), which bought the now-defunct Signature bank last year, saw its stock value fall by 30% in five days as it approaches the one-year mark of the initial banking chaos.
The NYCB seeing stock drops alarmingly, closing at $4.20 on February 6, according to TradingView. Benjamin Cowen, CEO and founder of the Into the Cryptoverse newsletter, noted wryly that the bank's value had regressed to its 1997 valuation. With the Federal emergency loan program for regional banks expiring in a month and regional banks holding 70% of the outstanding CRE debt, Cowen pondered whether the regional banking crisis ever truly ended.
Bitcoin also witnessed sharp volatility amid bank collapses in March 2023, and it took the Federal Reserve's intervention with the Bank Term Funding Program (BTFP) to stabilize affairs. The BTFP won't be available this year, a scenario that Arthur Hayes, former BitMEX CEO, thinks will create a familiar crisis. Hayes has projected a potential drop of BTC to $30,000 this March followed by a rebound.
Hayes has also reiterated his forecast of a $1 million BTC price considering the NYCB's losses and the Moody cutting its status to junk. But despite facing numerous potential macroeconomic triggers, from the impact of regional banking crises to the launch of U.S. spot exchange-traded funds (ETFs), Bitcoin remains unaffected as it has kept within a defined daily range for over 150 days. Readers are reminded to conduct their research, as every investment and trading move involves risk, and this information is not provided as investment advice or recommendations.
Published At
2/7/2024 1:21:11 PM
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