If we look at this week's stock heatmaps, we see a striking 9 % plunge in the banks' sector and 4 % dive in the Real Estate sector.
Recently, we have witnessed the bankruptcy of several banks due to their insufficient liquidity or regulators' activity (in the crypto field).
Despite this, FED announced another interest rate hike from 4.75% to 5% yesterday. In this regard, banks suffering from a lack of liquidity will need it even more.
And the Treasury will:
>> print more money to supply banks or
>> let them collapse.
It is important to note that Janet Yellen (Secretary of the U.S. Treasury) said yesterday that the U.S. is not considering 'blanket insurance' for bank deposits.
In either case, depositors (individuals and organizations) will suffer the brunt of either hyperinflation or the loss of their assets in the failing banks (and the following domino effect).
In this environment, it is not surprising that depositors are looking to save heaven for their assets and withdraw their funds from banks. And oddly enough (for some folks), they began to pay attention to #bitcoin, which can be seen in the chart of price changes.
And this is just the beginning of the story because two of the busted (better to say executed) banks were crypto-friendly. #signaturebank also had enough liquidity but was seized by regulators and afterward sold to $NYCB, tho without their crypto branch, which stays under FDIC control.
And just recently, the SEC issued a notice that "Those offering crypto asset investments or services may not be complying with applicable law, including federal securities laws."
Regulators have clearly made a mess of things in recent years.
Now they are attacking the crypto industry, and we are just at the dawn of the Great #financialcrisis.
Stay tuned and DYOR fam 🤙
