Macro Markets, hosted by crypto analyst Marcel Pechman, airs every Friday on the Cointelegraph Markets & Research YouTube channel and explains complex concepts in layman’s language, with a focus on the cause and effect of traditional financial events on daily crypto activity.
PacWest Bancorp’s 50% stock price fall and the ongoing banking crisis are the first topics of this week. The bank has $40 billion in assets, although 80% of its loan portfolio is allocated to commercial real estate loans and home mortgages. The topic? As always, rising interest rates. Meanwhile, US banks’ total underwater bond position, not counting derivatives, is $600 billion.
However, the US Treasury has bailed out each of the last three bankruptcies: Silicon Valley Bank (SVB), Signature Bank and First Republic. SVB losses are estimated at $20 billion, or 15% of the Federal Deposit Insurance Corporation’s (FDIC) total capacity.
Pechman explains how Bitcoin (BTC) price should react if PacWest Bancorp fails and why gold recently flirted with its all-time high above $2,050. More importantly, how is the banking crisis affecting the national debt spiraling out of control – consequently hugely positive for bitcoin in the long run.
The next concluding segment from Macro Markets focuses on oil prices as the energy commodity is down 17.5% in three weeks. Pechman shows how the Organization of the Petroleum Exporting Countries (OPEC) doesn’t really control production and how the US government played a key role in reducing demand for oil imports.
According to Pechman, the biggest opportunity for Bitcoin is the potential downside in oil demand due to weaker economic conditions, which can be seen as a near-term negative driver for risky assets, including cryptocurrencies.
If you’re looking for exclusive and valuable content provided by leading crypto analysts and experts, be sure to subscribe to the Cointelegraph Markets & Research YouTube channel. Join us every Friday at the Macro Markets.
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