The shares of the bank on the New York Stock Exchange fell by 37.67% at the close of trading on Wednesday, bringing the stock to a price of $6.47. While the fallout seems to be on a corrective path, with after hours trading jumping by 3%, the headwinds are still there, and it underscores the strain many banks are still facing.
It is worth noting that New York Community Bank was the savior of the then-popular crypto-focused Signature Bank (OTC:SBNY). Signature Bank’s forced liquidation by authorities came at a time when other regional banks like Silvergate Bank and Silicon Valley Bank experienced intense capital flight that marred their operational capabilities.
Now, the same bearish sentiment is returning, and a tsunami, if allowed to break out, might take a significant toll on the New York economy.
Bitcoin is immune to inflation per its design, which includes a hard cap of 21 million coins that can ever be produced. With top traditional banking giants like BlackRock (NYSE:BLK) now properly invested in BTC through the iShares Bitcoin Trust, more security has been lent to the coin as the accumulation from the firm and other spot Bitcoin ETF issuers will boost the supply shortage for the asset.
These events have caused veterans like Samson Mow to predict a $1 million Bitcoin price in the long term. Indicators suggest that Bitcoin might be a worthy savior to shield investors from the pangs of an NYCB-like collapse.
This article was originally published on U.Today
Source: Cryptocurrency - investing.com
