Why Did NYCB Stock Fall Amid Bitcoin Price Rise?
Shares of New York Community Bank (NYCB) plunged more than 20 percent, to a 27-year low, after reports of internal control issues.
Amid NYCB stock decline, Bitcoin is nearing its previous all-time high.
NYCB goes down, Bitcoin goes up
Community Bank of New York is facing its lowest share price since 1997, according to Kobe's letter.
“The weakness is related to credit evaluation due to ineffective supervision and risk assessment.”
NYCB previously acquired Signature Bank in March 2023, which failed during the regional banking crisis.
Read more: Crypto vs. Stocks: Where to invest your money in 2023
While many thought the crypto was the reason for its pro-crypto stance, the bank confirmed that this was not the case. In April 2024, NYDFS Superintendent Adrian Harris confirmed that crypto was not the cause of the shutdown.
Federal regulators have shut down Signature Bank, citing concerns about systemic risks.
However, the mainstream media is responsible for the failure of crypto.
Harris described the events leading up to the collapse as a “new-fashioned bank run.”
NYCB Bitcoin
Firma said it had high levels of uninsured deposits and lacked liquidity management protocols to meet withdrawal requests.
According to the Federal Deposit Insurance Corporation (FDIC), Signature Bank had approximately $4 billion in deposits related to its crypto asset banking business.
Read more: 10 Best Crypto Exchanges and Apps for Beginners in 2024
NYCB wasn't the only U.S. regional bank whose share price has been affected in recent times.
In the year On February 7, the Kobayashi Letter reported that Valley National Bank is down 25%, Metropolitan Bank is down 15%, HarborOne is down 14%, and Comerica Bank is down 13% this year.
On the other hand, major investment bank Morgan Stanley expects the United States to experience a recession in the near future.
Meanwhile, as the share price continues to decline, Bitcoin is approaching a 2021 all-time high of $65,000.
At the time of publication, the Bitcoin price is $61,493.
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