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- Analysts believe that the banking crisis is not yet over with more banks set to collapse.
- According to Macro Investor Bert Dohmen, the US economy could go worse than the Great Depression.
Investors were left in a state of uncertainty when the Bitcoin (BTC) price pulled back from $30k to hit a little below $28k, before moving up the price curve to trade above the price point. It was previously reported that the asset could either take a rebound to hit $30k or move down to trade at $25k depending on how investors react to interest rate decisions by authorities. Bitcoin is currently bullish and is trading at $29,212.54 as of press time. Ethereum (ETH) is also following a similar bullish trend after surging by 0.19 percent in the last 24 hours to trade at $1,901.82.
In the Equity market, Wall Street’s benchmark equity index, S&P 500, closed down 0.7 percent on Thursday. The Dow Jones Industrial Average (DJIA) fell by 0.8 percent with Nasdaq Composite falling by 0.4 percent. The banking crisis has still left investors in fear as regional banking stocks on Thursday recorded a considerable pullback. PacWest Bancorp (PACW) fell by 50 percent with Western Alliance Bancorporation (WAL) falling by 30 percent on Thursday.
Banking Crisis Not Yet Over
It is reported that a note on the 2-year Treasury yield fell to 3.78 percent. It fell by 15 basis points to its lowest mark of the year. The 10-year Treasury yield also fell by 2 basis points to around 3.37 percent. According to Anthony Georgiades, co-founder of decentralized layer 1 blockchain Pastel Network, banks will certainly struggle with these yield curves, and the Federal Reserve will be forced to take action by triggering urgent rate cuts to prevent the economy and the banking industry from falling into more serious trouble.
Macro Investor Bert Dohmen, in an interview with Stansberry Research, has also disclosed that the previous banking collapse is just the tip of an iceberg.
We have three of the biggest banking failures in US history within six days and everybody’s pretending this is a one-off event that won’t happen again. This is the tip of the iceberg, and if you know about icebergs you know one-seventh of the iceberg is above water. That means six-sevenths of the iceberg is below water and that’s going to sink everybody else. Not only did we have these bank failures in the US, it was followed by the biggest bank failure in Switzerland ever. The biggest bank, Credit Suisse, 137 years old, went bankrupt overnight and had to be bailed out. This is going to be an international crisis.
Gold Could Rise Then Face a Strong Correction as Bitcoin Gets Inflows
He further stated that there is a $1.6 quadrillion of derivatives outstanding internationally that is unregulated. According to him, there could be an economic collapse as bad or worse as the Great Depression if lawmakers do not reverse course.
When this happens, Bitcoin could receive massive inflows as it did in the Silicon Valley (SVB), and surge to hit the $35k price mark.
Dohmen also spoke on gold, stating that it could move up on the price curve before facing a strong correction.
So don’t be trapped when you read headlines that gold made a new record high. That would be a sell signal… Then you’re going to have a big drop and eventually you could have a great buying opportunity when the central banks step on the accelerator and create trillions and trillions of dollars of artificial money.
