The de-pegging of the second-largest stablecoin, USDC, from the dollar due to the collapse of Silicon Valley Bank has caused concern in the market. Despite being intended to maintain a 1-to-1 peg with the U.S. dollar, USDC fell to $0.94 on the Kraken exchange. The recent collapse of SVB Bank and Signature Bank has caused chaos in the market, and the negative impact is likely to be felt in the long term.
To address the situation, the Biden administration has taken emergency measures to prevent any possible spillover from Silicon Valley Bank's failure. On Sunday night, US banking regulators implemented procedures to ensure that depositors at the bankrupt bank can access all their funds. Signature Bank was also liquidated, with depositors fully reimbursed.
Larry McDonald, the founder of Bear Traps Report, recently predicted an impending crash in the stock market. McDonald attributed the forecast to the Federal Reserve's efforts to catch up with the ongoing inflation, which he claims has reached alarming levels. He cited the 21 Lehman systemic risk indicators that show a high probability of a stock market crash within the next 60 days. McDonald also highlighted the significant outflow of capital from middle-class families due to the Fed's most aggressive rate hike campaign since the 1980s. Although the consumer price index is gradually declining from its peak of 9.1% in June 2021, it remains three times higher than the pre-pandemic average.
Despite the challenges, there are opportunities to profit from such markets, provided that investments are diversified and extensive research is conducted.
To address the situation, the Biden administration has taken emergency measures to prevent any possible spillover from Silicon Valley Bank's failure. On Sunday night, US banking regulators implemented procedures to ensure that depositors at the bankrupt bank can access all their funds. Signature Bank was also liquidated, with depositors fully reimbursed.
Larry McDonald, the founder of Bear Traps Report, recently predicted an impending crash in the stock market. McDonald attributed the forecast to the Federal Reserve's efforts to catch up with the ongoing inflation, which he claims has reached alarming levels. He cited the 21 Lehman systemic risk indicators that show a high probability of a stock market crash within the next 60 days. McDonald also highlighted the significant outflow of capital from middle-class families due to the Fed's most aggressive rate hike campaign since the 1980s. Although the consumer price index is gradually declining from its peak of 9.1% in June 2021, it remains three times higher than the pre-pandemic average.
Despite the challenges, there are opportunities to profit from such markets, provided that investments are diversified and extensive research is conducted.
0 Comments