It’s getting worse, for the banks and it’s also getting worse for your crypto exchange like Binance, depending on where you hold it and to be clear a couple days ago. I did a blog, I was saying to get your crypto out now and I’m not saying to go sell your crypto wording is a very very important.
So I’m saying, get your crypto out o fex changes, we just got news that binance had a temporary issue impacting spot trading. So they suspended withdrawals and deposits. we’ll talk about that, what this means for crypto.
We actually saw, Bitcoin drop from 28.1 down to 27.5, just in two minutes. After this happened so we’ll talk about that, talk about what’s getting worse in the banking system. because it looks like another bank is getting ready to collapse.
Now, Bitcoin crypto in general fell just a few minutes ago, as I said now it’s starting to recover a little bit. so why is that well binance said that, they are aware of an issue impacting spot trading on binance. All spot trading is currently temporarily suspended as we work to resolve this issue as soon as possible.
New updates will be shared here, then CZ said initial analysts indicate matching engine encounter encountered a bug on a trailing stop order a weird one recovering estimated 30 to 120 Minutes ish waiting for a more precise ETA deposits and withdrawals are as a Saab standard operating procedure funds are safu.
Now some people are guessing that, there’s a mismatch of funds and that’s why this happened personally. I don’t care why it happened. I just know that, if I have my crypto on an exchange it’s a lot safe right. Binance can stop withdrawals.
They can stop deposits, they can stop trading, in a second and I’m just at their whim, now if I had crypto on binance no I don’t think, this is affecting binance us. but still, I have to wait a couple hours, what could happen in a couple hours. we could fall down five thousand dollars, we could fall down more than that right.
I might not ever be able to get my crypto again, if there’s some massive blow up on the exchange and they go and solvent just like the other bank. The other crypto exchanges now to be fair there haven’t been a lot of people talking behind the scenes about Finance in a while talking about insolvency or anything like that.
So that’s probably a good sign that, they’re fine but still, I don’t like to see this on exchanges that, I might be using and every exchange can have this happen, so if you have your crypto on binance or binance us just like always.
I would suggest getting it off putting on Cold Storage putting it on a hot wallet something else. where you hold your own keys and this is not fun, this is just good self-management and this is just good, this is good for you to get used to this with your cryptos.
That’s the point of crypto in the first place is that, you can actually hold your own cash onto anyone that’s gonna rage in the comments about how I’m just spring fud.
You can leave the blog, I don’t care this is not fun this is just obvious that, you should get your crypto off of exchanges, if you value your money now with that being said, bitcoin’s moving back up it’s good news right sounds like, this is going to be taken care of soon.
Maybe, Finance even just announced that they’re gonna allow trading again these temporary pieces of news can be good for buying crypto and it can actually help, you get in at better spots in the future right. whenever there’s this kind of cascading liquidation or sell-off, if you can nail this first green candle.
You can make some good money, so just pay attention to that there’s always good buying in prices, there’s always good swing trades. I don’t swing too much myself, I’m looking more for the long term but, don’t get flooded out of an investment, just get flooded out of centralized exchanges.
Now, let’s move on to what’s getting worse in the banking sector. Fed Bank term funding which rose to about 54 billion from 12 billion and this is just that emergency facility that, they’re making with different banks to increase liquidity.
Basically and they have a lot of the treasuries that are going to expire or hit maturity. I should say in 2023 and 2024. so they’re kind of stuck they have to continue adding assets to the balance sheet to backstop.
The banks and they’re worried about inflation that’s why, they’re raising in the first place. but, because of inflation they have to add more assets, they also have a lot of treasuries maturing soon. so it seems like they’re going to have to flip, they’re gonna have to flip and go dovish here soon and stop raisin grates.
Now they said that, they’re going to raise a couple more times, at least 25 basis points but possibly even another 25 and then another 25 but, banks are breaking. We heard about Deutsche Bank, their credit default swaps, which insure their bondholders against potential risks.
Default spike is banking Doom is back in Europe markets, pricing 31 probability of default for Deutsche Bank sub bonds and 16 for the senior DP paper. you can see just spikes and we haven’t seen a spike like this since back in 2020.
Basically this was when we had covet obviously and people are paying out the butt for insurance. Now this is exactly what happened just a few days before, some of the other banking collapses recently like Credit Suisse had the same thing happen and then a few days later the Swiss government had an emergency meeting on a Sunday to get them bought out by UBS.
Now Deutsche Bank is one of the banks it sounds like, that was reaching out to the government to basically say hey tell everyone, how great our liquidity and capital position is please we need it. so it seems like they’re having a lot of issues.
So they didn’t collapse completely like so many other stocks did. but a lot of people say it, they have problems behind the scenes. Now I want to hear your opinion. I think Deutsche Bank is probably in trouble if you have money at Deutsche Bank. I don’t know what their regulations or laws are, what kind of protections you have as someone who has deposits there.
But you know, where there’s smoke there’s firing out probably get your money out. now we also have the market just pricing in these rate Cuts. So we may see this priced into the market at some point, it’s seems like some of this is already priced into the market.
But the government’s basically saying that, they’re going to raise another 25 basis points, so they’re saying okay at the next meeting, we’re expecting around a 4.9 percent federal funds rate, which is you know just a little bit higher than that or just a little bit higher than now and then we’re expecting Cuts.
So then we’re expecting the fund rate to come back down and then down, again down, again down, again down, again and they’re actually pricing in 1.2 percent Cuts throughout the rest of the year or until you know January 31st which is crazy.
The market is now pricing in 1.2 percent of cuts, when the FED is saying we’re not going to cut at all. It tells you, how much the market actually believes Jerome Powell and his ability to continue raising rates and to continue to break this system. whether it’s a debt or whether it is Banks, because they are highly levered.
