CRYPTO IS PUMPING
The bank crisis as led to something that no one was really expecting to happen this week and that is that the FED could stop raising interest rates. The market right now is pricing and then almost a 40% chance of no rate hike next week at the Federal Reserve meeting. You should know that it is the rate hikes that are about to cause a mass extinction event for regional Banks in the USA. The situation is so bad that the FED is rolling out a back-door money printing program by backstopping the entire backing system and saying that the deposit will recover at every bank matter the cost. You should know that the Federal Reserve has an infinite supply of money. They are going to need it because the FDIC has just said there are 620 billion dollars in unrealized losses of banks right now.
Money printing has started already, now we just need the Federal Reserve to stop those interest rate hikes and also lower them. The clearest sign of a major economic shift underway is the collapse in Bond yield. The 2 years treasury Bond is down over 1% in the last few days, from 5.06% to 3.95%. Bond yield collapsing, which is going to send money back into stocks because people are going to start seeking dividends. Rate hike stopping, that pumps up the market. The FED printing money to bail out hundreds of billions in losses at banks, that's going to flood liquidity into the markets which are bullish for risk assets. Binance is buying a billion dollars worth of Bitcoin, Ethereum, BUSD, and BNB, markets are already liking that announcement.
This current crypto pump is really awesome. I hope for more pump to come.
Hopefully this pumping contain this year long.
The article provides a detailed analysis of the current economic situation and its potential impact on the cryptocurrency market, highlighting the unexpected rise of Bitcoin and the bullish outlook for risk assets.