The crypto market corrected sharply on March 11, after 8 of the top 10 stablecoins lost their pegs from their $1 levels. Several exchanges, including Binance, have paused USDC withdrawals until banks open on Monday.
However, stablecoins are now recovering to their $1 mark following a weekend drop, while US officials consider bailing out all Silicon Valley Bank deposits.
JUST IN: 🇺🇸 US officials consider bailing out all Silicon Valley Bank deposits, WAPO reports.
— Watcher.Guru (@WatcherGuru) March 12, 2023
A leading financial analyst who predicted the collapse of Lehman Brothers in 2008, warned that the stock market could crash in the next 60 days. And if the stock market crashes, the crypto market could go down along with equities.
Larry McDonald, financial analyst and founder of The Bear Traps Report, predicts that the stock market could crash within the next 60 days.
In a recent interview with Fox News, McDonald’s warned that middle-class families across America are “drawing money” from banks at a “spectacular” rate.
He added that “record withdrawal volumes could set the stage for widespread economic uncertainty.”
McDonald’s stated that the positive stance of Fed Chairman Jerome Powell interest rate hikes will add fuel to the stock market’s impending crash.
“They are playing catch. While they were doing quantitative easing in 2021, inflation started raging, now they’re trying to catch up,” he said.
Despite expecting good things to come, McDonald’s still had to issue a warning that the stock and crypto markets could crash in 60 days.
“I’ve looked at multiple risk metrics, looked at equity and credit…all of them are pointing in the same direction that has the highest probability of a 60-day stock market crash. come,” he said.
The collapse of Silvergate, Silicon Valley and Signature Banks and the unstable anchor prices of stablecoins to the US Government’s move to target stablecoin issuers all led to financial turmoil. . The next few weeks could determine the direction of the stock and crypto markets in 2023.
See also: Elon Musk mocks those calling cryptocurrencies a scam after the fall of Silicon Valley Bank
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