Godfrey Benjamin
New York Community Bank is experiencing a massive stock sell-off. Will Bitcoin save the day?
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The United States could be on the brink of another major crisis, with signs already showing at some regional banks. According to a recent Reuters report, New York Community Bank (NYCB) is currently experiencing a huge sell-off in its share price after investors showed lack of confidence in the company following a massive dividend cut.
The bank's shares on the New York Stock Exchange fell 37.67% to trade at $6.47 at the close on Wednesday. While the impact appears to be moving toward a corrective course, with after-hours trading up 3%, the headwinds are still there, underscoring the strain many banks still face.
It is worth noting that New York Community Bank was the savior of the then popular cryptocurrency-focused Signature Bank. The forced liquidation of Signature Bank by authorities came at a time when other regional banks such as Silvergate Bank and Silicon Valley Bank were experiencing severe capital flight that affected their operational capabilities.
Now the same pessimistic mood is returning, and if a tsunami hits, it could take a significant toll on New York's economy.
Save Bitcoin (BTC)?
One of the main advantages of Bitcoin is its immunity from related financial crises of this kind. Many top proponents such as Michael Saylor have always stuck to the premise that Bitcoin is sound money, strictly protected by a code.
Bitcoin is immune to inflation by design, which imposes a hard cap of 21 million coins that can ever be produced. Now that traditional top banking giants like BlackRock have properly invested in BTC through the iShares Bitcoin Trust, the coin has been given more security as accumulation by the company and other spot Bitcoin ETF issuers will increase the supply shortage for the asset .
These events have led veterans like Samson Mow to predict a Bitcoin price of $1 million in the long term. Indicators suggest that Bitcoin could be a worthy savior to protect investors from the consequences of a New York City-like collapse.
About the author
Godfrey Benjamin
Godfrey Benjamin is an experienced crypto journalist whose main goal is to educate everyone around him about the prospects of Web 3.0. His love for cryptocurrencies was born when, as a former banker, he discovered the obvious advantages of decentralized money over traditional payments. Due to his extensive experience in various aspects of Web3, Godfrey's articles have been published on Blockchain.news, Cryptonews and Coingape, among others.
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