The banking sector is facing problems as there is a push to hide data from the public, specifically in regards to credit default swaps (CDS), which are insurance products purchased by those fearing bank collapse. CNBC has delisted CDS data for five banks, including JP Morgan and Bank of America, and the IMF warns the global financial ecosystem is at risk due to banking collapse and contagion. Despite this, some argue that everything is under control and the Fed is not printing new money, however, the Fed’s balance sheet is expanding rapidly. Bloomberg reports that Bitcoin is seen as a way to flee to safety, positioning the cryptocurrency well in the global digital economy. The monthly scale for Bitcoin is looking positive, with a breakout towards a level of approximately $35,000 anticipated.
Understanding the Banking Crisis and the Rise of Crypto
Welcome to Good Morning Crypt, only on iPhone Tech! Today, we’ll be discussing the problems that the banking space is facing, and why crypto may be the biggest opportunity in the current financial landscape.
Banking Crisis: Hiding Data and Risking Contagion
Right now, there is a push to hide the data from the public, as CNBC is delisting the credit defaults to our data for five banks, including JP Morgan and Bank of America. This is a key issue because credit default swaps (CDS) are basically insurance that people are buying because they are afraid that the bank will collapse. When you see in the chart that the demand for these CDS is going up, you know that the bank is in trouble and the market thinks that the bank will die very soon.
At the same time, the International Monetary Fund (IMF) is coming out and saying that the global financial ecosystem is at risk now due to the banking collapse and contagion that may happen. Despite this, some people are still saying that everything is under control, and the banks are safe. Silicon Valley Bank is safe, and the Fed is not printing money.
However, these are all myths that need to be debunked. The Fed is printing money, as we saw in 2019 when they had to print like never before to stimulate the markets. The Fed’s balance sheet is mooning like never before, and they canceled two years of tightening in just a few weeks. You need to use your own brain and view on the matter to understand the truth.
Crypto Rise: Bitcoin as Digital Collateral
One opportunity that emerges from this crisis is crypto, especially Bitcoin. Bloomberg’s key analysts are coming out and saying that right now, Bitcoin is in a perfect position, and for the first time, it is seen as a way to flee to safety. Bitcoin is becoming more like cold US Treasury bonds, but just a higher beta version of gold. It’s gaining accolades as a global digital collateral in the world that’s going digital.
We’re in a digital age where store of value needs to behave in a way that matches the speed of light, the digital information speed. People want to store value now, not wait for the gold to arrive to inspect the gold or to worry about fake gold. Crypto is positioned well to offer a new kind of store of value that’s both global and digital.
Trading Opportunity: Monthly Scale and BuyBit
Looking at the market, we do see some flatness, but on the monthly scale, Bitcoin is breaking out towards the area of 35k. If you want to trade and take advantage of this opportunity, you can use BuyBit, a platform that allows you to long and short, trade with leverage or spot, depending on your risk preference. By signing up with our link, you support the channel and get a big juicy bonus.
The banking crisis is a complex issue that requires understanding and action. Crypto offers a new kind of opportunity that matches the demands of the digital age and offers a more robust store of value. Trading with BuyBit can help you take advantage of these opportunities and navigate the market with confidence. Stay tuned for more news, analysis, and insights in Good Morning Crypt, only on iPhone Tech!