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Macro Markets, presented by crypto analyst Marcel Pechman, is broadcast every Friday on the Cointelegraph Markets & Research YouTube channel, where it simplifies intricate concepts for a general audience, emphasizing the relationship between traditional financial events and daily cryptocurrency activities.
This week’s episode begins with a discussion on PacWest Bancorp’s 50% drop in stock price and the ongoing banking crisis. The bank possesses $40 billion in assets, with 80% of its lending portfolio allocated to commercial real estate loans and residential mortgages. The underlying problem? As is often the case, increasing interest rates. Additionally, U.S. banks currently have a total underwater bond position of $600 billion, excluding derivatives.
Nevertheless, the U.S. Treasury has intervened to support the last three bankruptcies: Silicon Valley Bank (SVB), Signature Bank, and First Republic. SVB’s losses are projected to be around $20 billion, representing 15% of the total capacity of the Federal Deposit Insurance Corporation (FDIC).
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Pechman discusses how Bitcoin’s (BTC) price might respond if PacWest Bancorp were to collapse and examines why gold has recently approached its all-time high of over $2,050. More significantly, he addresses how the banking crisis affects government debt, which is escalating uncontrollably — a situation that could be very favorable for Bitcoin in the long term.
The concluding segment of Macro Markets shifts focus to oil prices, which have decreased by 17.5% over the past three weeks. Pechman illustrates how the Organization of the Petroleum Exporting Countries (OPEC) does not effectively control production and highlights the U.S. government’s significant role in reducing the demand for oil imports.
Pechman notes that the primary takeaway for Bitcoin is the potential stagnation in oil demand due to deteriorating economic conditions, which may be viewed as a short-term negative influence on risk assets, including cryptocurrencies.
If you seek exclusive and insightful content from top crypto analysts and experts, be sure to subscribe to the Cointelegraph Markets & Research YouTube channel. Join us for Macro Markets every Friday.
