Bitcoin stable at $43,000 as fall in US regional bank shares reignites concerns

Bitcoin (BTC) remained stable around $43,000 on Thursday as falling values ​​of U.S. regional banks reignited fears about the health of U.S. lenders and a repeat of last March’s banking crisis.

New York Community Bancorp (NYCB) shares extended their decline of more than 40% since Tuesday, hitting lows similar to last March after reported losses arising from its commercial real estate loans and dividend reduction. The KBW Nasdaq Regional Bank Index (KBR), a benchmark for the sector, edged down another 2% after yesterday’s biggest daily decline since March.

Market observers have also pondered the importance of the Federal Reserve. deletion of key language addressing the resilience of the U.S. banking system in Wednesday’s statement on its interest rate decision in previous forums, a development largely thwarted at the time by Fed Chairman Powell wiping out hopes of imminent rate cuts. “Who would have thought that removing ‘the U.S. banking system is healthy and resilient’ would be the most important phrase yesterday,” said Quinn Thompson, head of capital markets and growth at lending platform Maple Finance. said in an article

During the “banking crisis“In particular, bitcoin rebounded strongly – after a short-lived decline – close to $30,000 from $20,000, becoming an asset seen as an independent “haven” from the woes of the banking system.

This time, Bitcoin’s price action has been muted so far. The largest crypto by market cap rebounded slightly from below $42,000 earlier today, consolidating within the familiar channel capped at $44,000.

At press time, BTC changed hands at just under $43,000, up 1% in the last 24 hours. The CoinDesk 20 {{CD20}}, a broad crypto market benchmark that tracks the largest crypto assets, gained 1.5% during the same period.

“Whatever the reason for BTC’s risk-averse behaviour yesterday, it highlights the fascinating but confusing duality of the BTC market – sometimes it’s a macro risk asset, sometimes a hedge against the macro risk,” Noelle Acheson, analyst and author of Crypto Is. Macro Now newsletter, wrote Thursday.

Maple Thompson said he was surprised by Bitcoin’s late reaction, but it is “cautiously long.”

“Traditional ‘stores of value’ are slowly eroding. Commercial real estate and local U.S. banks have historically been considered safe assets for storing wealth,” said Dan Tapiero, a leading investor in digital assets and venture capital. job on

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