New York Community Bancorp, Inc. (NYSE: NYCB) shares plunged 45% today following a dividend cut and an unexpected profit loss. History has proven that when banks bleed, Bitcoin is often the beneficiary. This time is no exception, with BTCUSD hitting new highs against NYCB.
New York Community Bancorp shares plunged 45% in one day
In March 2023, Bitcoin fluctuated sharply from its bottom range as the banking system collapsed. At the time, Signature, Silicon Valley, and Silvergate were all experiencing massive bank failures. Each bank’s share price fell before the collapse, signaling to the market that something was wrong. Silvergate in particular was later acquired by New York Community Bancorp.
Now, shares of New York Community Bancorp are down 45% in a sharp pre-market sell-off. The quarterly dividend paid to shareholders was reduced by 71% from $0.17 to $0.05, creating selling pressure. Two bad loans also added to the surprising revenue losses. Share prices of other regional banks were also affected.
A new record high against NYCB | BTCUSD on TradingView.com
Bitcoin sets new ATH record against regional banks
BTCUSD hit a new all-time high as NYCB stock priced in more trouble today. That’s not shocking, considering the fiasco of traditional banks. However, this may be a noteworthy development. In the past, every time it hit a new all-time high, Bitcoin would hit new highs month after month for about a full year.
If Bitcoin remains bullish for a year or so, 2024 could turn out to be the most interesting year ever for the cryptocurrency market.
Past ATHs led to a sustained bull run | BTCUSD on TradingView.com
Another victory for Satoshi Nakamoto
BTC was designed by Satoshi Nakamoto to allow individuals to opt out of the traditional banking system, which has been in trouble since the 2008 financial crisis. Hidden within the genesis block of the Bitcoin blockchain is a headline from The Times titled “Chancellor on track for second bailout of banks,” referring to a series of post-crisis bailouts.
Fifteen years later, Bitcoin has just been approved as a spot ETF, allowing digital assets to widely enter the mainstream market. If the banking system weakens further, wealth may continue to flow into BTC market capitalization through these new ETF wrappers.
