Monday, December 4, 2023
  • About Us
  • Contact Us
  • Privacy Policy
  • Terms and Conditions
  • en English
    ar Arabicbg Bulgarianzh-CN Chinese (Simplified)nl Dutchen Englishfr Frenchde Germanit Italianpt Portugueseru Russianes Spanish
Crypto Miracles
Advertisement
  • Home
  • Crypto News
    • Bitcoin
    • Ethereum
    • Dogecoin
    • Litecoin
    • Ripple
    • Altcoin
    • Press Release
  • Blockchain
  • People
    • Opinion
    • Interview
  • Business
  • Technology
  • Market
  • Analysis
  • Live Price
  • Regulation
  • Guide
No Result
View All Result
  • Home
  • Crypto News
    • Bitcoin
    • Ethereum
    • Dogecoin
    • Litecoin
    • Ripple
    • Altcoin
    • Press Release
  • Blockchain
  • People
    • Opinion
    • Interview
  • Business
  • Technology
  • Market
  • Analysis
  • Live Price
  • Regulation
  • Guide
No Result
View All Result
Crypto Miracles
No Result
View All Result
Home Bitcoin

Analyst Warns US Debt Crisis Is Possible — Rising Treasury Yields, Inflation, Stock Market Rout Could Cause ‘Multiple Black Swans’ – Economics Bitcoin News

September 7, 2022
in Bitcoin
Reading Time: 8 mins read
0
Analyst Warns US Debt Crisis Is Possible — Rising Treasury Yields, Inflation, Stock Market Rout Could Cause 'Multiple Black Swans'
Share on FacebookShare on TwitterPinShare on Reddit

Related articles

Satoshi Nakamoto’s brother creates a new  token with Bitcoin (BTC) rewards

Satoshi Nakamoto’s brother creates a new token with Bitcoin (BTC) rewards

November 3, 2023
Investors Seek Refuge in Cash as Recession Fears Mount, BOFA Survey Reveals – Economics Bitcoin News

Investors Seek Refuge in Cash as Recession Fears Mount, BOFA Survey Reveals – Economics Bitcoin News

May 18, 2023


Wall Street’s major indexes closed the day in red on Tuesday, alongside cryptocurrencies, and precious metals like gold and silver taking some percentage losses. The leading crypto asset bitcoin dropped 5.87% under the $19K region, while the second largest crypto asset ethereum shed 8.7%. Gold’s nominal U.S. dollar value per troy ounce slipped by 0.50%, while silver dropped by 0.74% on September 6. Meanwhile, a recent rise in U.S. Treasury yields has been concerning and one analyst thinks the anomaly could spark an American debt crisis.

Stocks Sink Lower, Crypto Economy Craters, Precious Metals Dip, Traders Await Fed’s Next Move

Tuesday was a bloody day of trading for Wall Street traders, gold bugs, and crypto proponents as markets shed significant losses. Investors are starting to weigh in on the upcoming Federal Reserve rate hike, and benchmark U.S. Treasury yields leapt to the highest tier in two months. Nasdaq, NYSE, S&P 500, and the Dow Jones ended Tuesday lower than expectations after the U.S. Labor Day holiday weekend.

S&P 500 and the Nasdaq Composite prior to the stock market’s opening bell on Wednesday, September 7, 2022.

Precious metals like gold, silver, and palladium were all down on Tuesday as well. Platinum and Rhodium, however, jumped between 0.71% and 3.97% higher against the U.S. dollar during the last 24 hours. The global cryptocurrency market capitalization of all the existing crypto tokens lost 4.2% during the last day. At the time of writing, on September 7, 2022, at 7:00 a.m. (ET), the crypto economy’s valuation stands at $940.10 billion.

Gold’s nominal U.S. dollar value per troy ounce on Wednesday, September 7, 2022.

Bitcoin (BTC) dropped by 5.87% on Tuesday, dropping below the $19K price range. Market strategists and traders are waiting for the next U.S. Federal Reserve rate hike on September 21, which is estimated to be around 75 basis points. “You have all this fear that more rate increases are going to happen at the central bank level,” Tom di Galoma, managing director at Seaport Global Holdings in New York, said on Tuesday. “Inflation is not going to dissipate and then you’ve got the quantitative tightening that’s coming pretty rapidly.”

Bitcoin’s nominal value per USDT on Wednesday, September 7, 2022.

Portfolio Manager Says US Treasury Deviations and Other Market Anomalies Could Spark a ‘Sovereign Default Crisis’

In addition to the U.S. central bank, Christine Lagarde, Luis de Guindos, and the European Central Bank are expected to increase the benchmark lending rate aggressively this week. Michael Gayed, the Lead-Lag Report publisher and portfolio manager, thinks the U.S. could have a sovereign debt crisis.

U.S. Treasuries rise at the fastest pace since June.

Gayed spoke with David Lin, the anchor and producer at Kitco News, and explained the abnormality with U.S. Treasury yields rising in an unprecedented manner is concerning. Gayed believes if U.S. Treasury yields get too high, it could make it harder for other countries to adhere to debt obligations.

“When you have $170 trillion of unfunded liabilities and $30 trillion of visible liabilities … How could that not be inflationary? Gayed asked Lin during his interview. “The only way to resolve that is to pay down that debt.”

Two and ten-year U.S. Treasuries on September 7, 2022, via Wolfstreet.com.

The portfolio manager further noted that Wall Street has suffered through some of the biggest monthly declines this year since the 2008 financial crisis. Skyrocketing Treasury yields, red-hot inflation, and the stock market rout could cause “multiple Black Swans,” Gayed stressed.

“The end result of all this is either some kind of sovereign default crisis, which is a deflation event, or the exact opposite, which is hyperinflation, which results in conditions under which something really bad comes,” the Lead-Lag Report publisher concluded.

Gayed also remarked that the financial crisis he predicts could bring forth a far more authoritarian-style government than we have today. “Something bad could happen, in terms of a new leader that you don’t want to see lead,” Gayed said.

Tags in this story
Bitcoin, Bitcoin Price, CFDs on gold, Christine Lagarde, crypto economy, Cryptocurrencies, debt crisis, dow jones, ECB, European Central Bank, Fed Hike, Federal Reserve, Lead-Lag Report publisher, Luis de Guindos, Markets, Michael Gayed, Michael Gayed forecast, Michael Gayed prediction, nasdaq, NYSE, portfolio manager, rate hikes, S&P 500, Seaport Global Holdings, Sovereign Default Crisis, stocks, Tom di Galoma, us treasuries, US Treasury Yields

What do you think about the global economy and the recent market downturn affecting stocks, precious metals, and cryptocurrencies? Let us know what you think about this subject in the comments section below.

Jamie Redman

Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 5,700 articles for Bitcoin.com News about the disruptive protocols emerging today.




Image Credits: Shutterstock, Pixabay, Wiki Commons, CNBC, Wolfstreet.com, Tradingview,

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

More Popular News

In Case You Missed It





Source link

Share2Tweet1PinShare
Previous Post

Bitcoin, Ethereum Technical Analysis: BTC Slips Below $19,000 Following Yesterday’s Failed Breakout – Market Updates Bitcoin News

Next Post

Biggest Movers: BCH, APE Fall to 2-Month Lows on Wednesday – Market Updates Bitcoin News

Related Posts

Satoshi Nakamoto’s brother creates a new  token with Bitcoin (BTC) rewards

Satoshi Nakamoto’s brother creates a new token with Bitcoin (BTC) rewards

by cryptomiracles
November 3, 2023

Zhao Nakamoto, a name that until today was truly unknown, is the young brother of Satoshi Nakamoto, well known in...

Investors Seek Refuge in Cash as Recession Fears Mount, BOFA Survey Reveals – Economics Bitcoin News

Investors Seek Refuge in Cash as Recession Fears Mount, BOFA Survey Reveals – Economics Bitcoin News

by
May 18, 2023

Investors, plagued by mounting pessimism, have sought refuge in cash, according to a recent survey conducted by Bank of America....

Report: Well Known Crypto Firms Still Not Adhering to Basic Governance Standards – Featured Bitcoin News

Report: Well Known Crypto Firms Still Not Adhering to Basic Governance Standards – Featured Bitcoin News

by
May 18, 2023

Many of the most well-known crypto firms are not adhering to basic governance standards, the findings of a Bloomberg survey...

EU Council Adopts New Rules for Europe’s Crypto Markets – Bitcoin News

EU Council Adopts New Rules for Europe’s Crypto Markets – Bitcoin News

by
May 18, 2023

The Council of the European Union has given its final approval to new regulations for crypto assets and markets in...

BRICS to Strengthen Economic Cooperation — Sherpa Calls for Increased Trade in National Currencies – Economics Bitcoin News

BRICS to Strengthen Economic Cooperation — Sherpa Calls for Increased Trade in National Currencies – Economics Bitcoin News

by
May 18, 2023

South Africa’s BRICS Sherpa says one of the priorities at the upcoming BRICS summit is “to strengthen economic cooperation.” He...

Load More
Next Post
Biggest Movers: BCH, APE Fall to 2-Month Lows on Wednesday – Market Updates Bitcoin News

Biggest Movers: BCH, APE Fall to 2-Month Lows on Wednesday – Market Updates Bitcoin News

Multichain Bitcoin․com Wallet Now Supports Avalanche (AVAX) – Press release Bitcoin News

Multichain Bitcoin․com Wallet Now Supports Avalanche (AVAX) – Press release Bitcoin News

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

I agree to the Terms & Conditions.

nineteen + four =

Crypto Miracles

We publish a comprehensive news feed covering all news relevant to the crypto user, covering main industry news, politics, and regulation as well as consumer-level “news you can use” (practical stuff), including handy DIY tips, links to useful tools, unbiased reviews and opinions revolving around cryptocurrency.

Categories

  • Altcoin
  • Analysis
  • Bitcoin
  • Blockchain
  • Business
  • Dogecoin
  • Ethereum
  • Guide
  • Interview
  • Litecoin
  • Market
  • Opinion
  • Press Release
  • Regulation
  • Ripple
  • Technology
  • Uncategorized

Recent Posts

  • Explosive Growth for Cardano Expected by 2024; Whales Flock to Arweave & InQubeta | NewsBTC
  • XRP Eyes Dethroning BNB From the 4th Position; BorroeFinance Continues to Stamp Its Authority in Web3 | NewsBTC
  • Coin Watch: $BTC’s Upside Target $40K, Downside Target $32K; $GFOX Soars 20% as Presale Surpasses $400K | NewsBTC

Newsletter

    • About Us
    • Contact Us
    • Privacy Policy
    • Terms and Conditions

    cryptomiracles.com © 2021 All rights reserved.

    No Result
    View All Result
    • Home
    • Crypto News
      • Bitcoin
      • Ethereum
      • Dogecoin
      • Litecoin
      • Ripple
      • Altcoin
      • Press Release
    • Blockchain
    • People
      • Opinion
      • Interview
    • Business
    • Technology
    • Market
    • Analysis
    • Live Price
    • Regulation
    • Guide

    cryptomiracles.com © 2021 All rights reserved.

    This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.