US bank in trouble again, bullish for bitcoin (BTC)?

New York Community Bank ($NYCB) fell 20 percent yesterday to reach its lowest share price in 27 years. Rumor has it that loans within the bank are in poorer condition than expected, due to poor internal controls. In response, a small panic has now broken out.

Will we see a sequel to the banking crisis? And what does this mean for the bitcoin price?

US banking sector under pressure

The large New York Community Bank is not the only American regional bank that has seen its share price fall sharply. On February 7, The Kobeissi Letter reported that Valley National Bank had fallen 25 percent, Metropolitan Bank lost 15 percent of its price value, HarborOne fell 14 percent and Comerica Bank took a hit of 13 percent.

The major investment bank Morgan Stanley expects that the American economy will slide towards a recession in the short term. Remarkably, Bitcoin does not care much about this misery and the price of the digital currency continues to rise.

Yesterday, Bitcoin encountered resistance, which may be the result of a $600 million sale of Grayscale Bitcoin Trust shares, but overall the price is performing above expectations. So much so that an all-time high before the halving seems a serious possibility.

Banking crisis good for bitcoin?

A new banking crisis could give Bitcoin the next boost. In March 2023, the start of the banking crisis was a moment for many investors to rethink their vision of the financial system.

How safe is my capital at the bank actually? And isn’t it interesting to store part of that capital completely outside the financial system in a decentralized asset like bitcoin?

In theory, that could happen again if American banks start to falter. If you combine that with the current bullish momentum around bitcoin, very special things could happen to the price.

After all, Bitcoin was in a very different position during the banking crisis of March 2023. Now the digital currency is also the center of all attention.