Hello everyone.
I think some people interpret this whole situation a little bit wrong so I wanted to share my opinion on this topic.
I think the banking contagion is now over. The government and federal reserves backstopping the banks with the protection of assets above 250k. So we won't see more bank runs because people know that their money is protected now so banks are safe.
Some people and media also say that the system broke and that means that federal reserves won't rise interest rates at the next meeting. And I think it's completely wrong. I think they will just rise rates for another 0.25% as a response to the SVB situation. The inflation is still pretty high and FED will keep fighting it, they can't afford to stop right now.
So I think we will still see a lot more bankruptcies, there will be more layoffs and the stock market will keep suffering from that. This also means that bitcoin will probably find a new bottom.
