Bitcoin hovered around the $43,000 mark on Thursday while concerns resurfaced over the stability of U.S. regional banks, triggering memories of last March’s banking crisis.
New York Community Bancorp (NYCB) saw its shares plummet over 40% since Tuesday, echoing lows seen in March as it grappled with losses from commercial real estate loans and a dividend reduction. The KBW Nasdaq Regional Bank Index (KBR) also slipped 2%, marking its largest daily decline since March.
Observers noted the Federal Reserve’s omission of language in its Wednesday statement regarding the resilience of the U.S. banking system, a detail overshadowed by Fed Chair Powell’s dismissal of immediate rate cuts. Quinn Thompson, head of capital markets at Maple Finance, remarked on the significance of this change, particularly in light of gold’s rise compared to U.S. bank stocks, traditionally viewed as safe havens.
During last year’s banking crisis, Bitcoin experienced a surge in value, briefly dipping before rallying to nearly $30,000 from $20,000, positioning itself as a perceived haven independent of traditional banking woes. However, Bitcoin’s response this time has been more subdued, hovering just below $43,000, with slight fluctuations within the $42,000 to $44,000 range.
Despite Bitcoin’s relatively muted reaction, Thompson expressed surprise and maintained a cautious optimism. Meanwhile, Dan Tapiero, a prominent digital asset investor, highlighted Bitcoin’s potential as a new store of value in an evolving landscape where traditional safe assets like commercial real estate and local U.S. banks are losing ground.