In February 2023, US PPI fell 0.1% month-on-month, below analyst expectations of 0.3%. Some analysts see the number as a sign that the Fed may raise rates by 25 basis points instead of 50 basis points at its next meeting next week.
Hedge Fund Manager James Lavish of Bitcoin Opportunity Fund said investors believe the Fed has removed a 50 bps increase from consideration and at worst there will be a 25 bps increase and possibly no more.
However, the newly released Initial Jobless Claims seem to go opposite bullish momentum built on two previous reports. Specifically, the number given is 192,000, lower than the forecast of 205,000 and last week’s data of 212,000, signaling a strong labor market. After that, the rate of interest rate increase of the ECB is 50 basis points, meaning there is no “pivot” away from the Eurozone.
Earlier today, to prevent the banking crisis from getting worse, the Swiss government confirmed a partnership with Credit Suisse to stabilize banks and reassure the public that systemic risks of the financial system main will be prevented. There have been rumors that the Swiss central bank will pump 50 billion Swiss francs ($53.8 billion) into the struggling Credit Suisse, sending its shares up 40% today.
According to Michael Novogratz, CEO of blockchain and digital asset company Galaxy Digitalwe may face crisis credit crisis in the US and globally. In this case, gold, silver, and Bitcoin could help save investors from a potential liquidity crunch as banks often “rebuild capital” by lending less.
However, some analysts want to be more cautious and believe that the Bank Term Funding Program (BTFP) could make it easier for the Fed to raise interest interest rates while preventing harm to banks.
See also: US banks borrow $ 165 billion from the Fed in a week
Cryptocurrency companies may have to turn to “underground banking” or find other banks willing to work with them following the collapse of Signature and Silvergate banks, as well as the FDIC’s attempt to stem such scams. Signature buyers shake hands with industry players, according to part software engineer Molly White. She is concerned that crypto companies may have to resort to solutions.” blur dark than ” while the industry still needs access to traditional finance and the US banking rails.
Data from Coin360 shows Bitcoin Domination has returned to a 9-month high at 45% after two weeks of turmoil in the crypto market. FundStrat research notes that increased Bitcoin dominance is often seen as healthy for the crypto market as it signals a relatively low level of volatility in the market, with crypto traders choosing to buy bitcoin over more speculative altcoins.
See also: Green weekend crypto ‘brilliant’: BTC surges over $27,000