A Recession Is Coming Here’s How It Fuels Bitcoin

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The Macro Markets show, hosted by crypto analyst Marcel Pechman, airing every Friday on the Cointelegraph Markets & Research YouTube channel, explains complex concepts in simple terms and focuses on the cause and effect of traditional financial events on day-to-day crypto. activity.

The International Monetary Fund (IMF) and the United States Federal Reserve predict an impending economic recession, which is the subject of today’s episode by crypto analyst Pechman. The video explains how the record unemployment rate in the United States could hide a bigger problem caused by inflation.

Pechman explains that the S&P 500 being only 13% below its all-time high was pushed by investors moving away from fixed income securities and why inflation is no longer a major concern. Finally, there is the connection between the banking crisis, a weaker US dollar and Bitcoin’s recent rally above $30,000.

The next segment of Macro Markets focuses on the leverage ratio of banks. There are growing concerns that financial institutions are running out of capital to cover their risks, but that’s not what the most recent data has shown. The culprit, according to Pechmans, is unrealized losses. Basically, banks hold debt securities that pay well below their cost of capital.

If you are looking for exclusive and valuable content from leading crypto analysts and experts, be sure to subscribe to the Cointelegraph Markets & Research YouTube channel. Join us at Macro Markets every Friday.

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