Benzinga - by Shivdeep Dhaliwal, Benzinga Editor.
Major cryptocurrencies were seen trading higher at the time of writing. The global cryptocurrency market cap was up 2.1% at $1.72 trillion, according to Coingecko data.
While Bitcoin and other major cryptocurrencies held steady, concerns over the stability of U.S. regional banking were rekindled. On Thursday, shares of New York Community Bancorp. slid following the release of fourth-quarter results.
| Cryptocurrency | Gains +/- | Price (Recorded at 12.16 a.m. EST) |
| Bitcoin (CRYPTO: BTC) | +1.98% | $42,960.56 |
| Ethereum (CRYPTO: ETH) | +1.38% | $2,296.80 |
| Dogecoin (CRYPTO: DOGE) | +0.88% | $0.08 |
Stocks of regional banks were highly volatile on Thursday. The SPDR S&P Regional Banking ETF considered a gauge for the sector, fell 3.12% to $48.15 at the end of the day's trading.
Analysts Ryan Nash and Christian DeGrasse said, “There could be a risk of increased regulatory scrutiny for regional banks as NYCB had previously acquired Signature Bank through FDIC receivership last spring,” the analysts said.
It should be noted that during the last banking crisis, Bitcoin saw a considerable gain. Ark Invest Management CEO Cathie Wood touched on the appreciation of crypto assets during the Silicon Valley Bank meltdown.
Top Gainer (24-Hours)
| Cryptocurrency | Gains +/- | Price (Recorded at 12.16 a.m. EST) |
| Pyth Network (PYTH) | +25.05% | $0.49 |
| FTX Token (FTT) | +17.78% | $2.03 |
| Chainlink (LINK) | +14.8% | $17.81 |
She had explained at the time that businesses and individuals were taking measures to hedge their fiat assets with crypto, in turn resulting in reduction of risk and increased returns by moving from "low-yielding bank deposits to higher-yielding money market funds."
Wood had also related a 20-fold increase in Fed funds rate at the time with the wipeout of investors in regional banks.
United States Fed Funds Interest Rate Since April 2022: Source: Trading Economics
Analyst Takes
Crypto trader Michaël van de Poppe noted that Bitcoin has dropped 20% since it hit the $48,500 level and the markets have corrected "alongside."
He said, "I’ve seen this sentiment in the previous cycles, but surrounding different topics."
"Don’t worry about 10-20% corrections in the short term if there’s so much upside in the long term."
I've seen this sentiment in the previous cycles, but surrounding different topics.The conclusion is that in 1-2 years, you'd be happy getting your positions.
Don't worry about 10-20% corrections in the short term if there's so much upside in the long term.
— Michaël van de Poppe (@CryptoMichNL) February 1, 2024
Santiment, a market intelligence platform, noted that Bitcoin Exchange Traded Funds are still "seeing plenty of volume" despite recent drops. The market intelligence platform said Wood's ARKB has seen the most volume with Fidelity's FBTC not "far behind." The rise in volumes for the newcomers has been at the cost of the long-standing Grayscale Bitcoin Trust or GBTC.