Bitcoin price predictions reaching $1 million are resurfacing as the U.S. regional banking sector experiences turbulence reminiscent of last year’s downturn.
Almost a year after several banks, including the crypto-focused Signature Bank, faced collapse, its buyer is currently down by 60% year-to-date
This situation is prompting discussions among Bitcoin enthusiasts about the possibility of a second banking crisis unfolding in the United States. New York Community Bancorp. (NYCB), which acquired Signature Bank last year, has witnessed a sharp 30% decline in its stock value over just five days, closing at $4.20 on Feb. 6, according to TradingView data.
Observing NYCB’s performance, Benjamin Cowen, CEO and founder of the crypto newsletter Into the Cryptoverse, pointed out the bank’s valuation being reminiscent of 1997 levels.
In March 2023, Bitcoin experienced volatility as regional banks faced distress, leading to the Federal Reserve’s intervention with the Bank Term Funding Program (BTFP), which lasted for a year and will not be renewed. Arthur Hayes, former CEO of crypto derivatives giant BitMEX, anticipates a similar scenario unfolding now, with Bitcoin possibly dipping to $30,000 in March before staging a recovery.
NYCB’s recent losses, coupled with Moody’s downgrading its status to junk, have reinforced Hayes’ $1 million BTC price forecast.
Meanwhile, China’s CSI 1000 index has suffered a $7 trillion loss since Q4 of last year, dropping 8% in a single day on Feb. 5 before rebounding amid rescue rumors.
Despite these macroeconomic triggers, Bitcoin’s response to the launch of U.S. spot exchange-traded funds (ETFs) has been relatively muted. BTC/USD has remained within a well-defined daily range for over 150 days,
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