While 2022 is one of the most worrisome events in the cryptocurrency space, with some of the biggest players plummeting, 2023 is proving to be a nightmare for the big banks. From the collapse of Signature Bank to Silicon Valley Bank to Silvergate, the fallout has rippled across the market.
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With the price of cryptocurrencies plummeting and stock prices falling, the impact on the macro market is significant. In the current environment, with Treasury prices soaring and two-year yields at rock-bottom levels, investors are expecting policy makers to stop rising. Fed swaps also suggest that another 25 basis point rise is less than a 1/2 chance.
Just: 🇺🇸 Fed swaps now show the most likely scenario is no more upside.
— Watcher.Guru (@WatcherGuru) March 13, 2023
Has the market’s worst moment come yet?
The two-year yield, the most vulnerable to policy changes, fell 60 basis points to less than 3.99%, the biggest drop since October. This is another sign that the Fed is unlikely to move higher in March.
Goldman Sachs economists no longer see a reason for the Fed to rise at next week’s meeting due to “near-term stress” in the financial sector. In a recent note, he mentioned that they don’t expect the Fed to go up in March.
Source of information: Compiled from WATCHER by 0x Information.Copyright belongs to the author, Vignesh Karunanidhi, and may not be reproduced without permission