Bitcoin’s price-bound price action could reach a breaking point if the sharp drop in U.S. regional bank stocks intensifies. How might altcoins react?
Bitcoin (BTC) has not displayed any fireworks since the launch of spot Bitcoin exchange-traded funds (ETFs), but that has not stopped investors from piling into select ETFs. According to senior Bloomberg ETF analyst Eric Balchunas, BlackRock’s iShares Bitcoin Trust ETF has catapulted into the top 5 ETFs in year-to-date flows.
The launch of the spot Bitcoin ETFs has resulted in investors shifting from gold to Bitcoin, according to ARK Invest CEO Cathie Woods. While speaking in a YouTube chat with chief futurist Brett Winton, Woods said that Bitcoin is likely to behave as a “risk off asset” during the next banking crisis.
The more than 60% fall in New York Community Bancorp (NYCB) stock since Jan. 30 brings back memories of the banking crisis seen a year ago. The fall is of particular interest to the crypto community because NYCB had acquired the failed crypto-focused Signature Bank in 2023.
