Bank deposits at US commercial banks drop ¥13 trillion from the previous week due to financial instability


U.S. Institutional Investors Could Drive Price Rise

U.S. bank deposits fell sharply between March 8th and March 15th. In the background are concerns about a series of major bank failures and financial crises.

Deposits at all U.S. commercial banks fell by about 13 trillion yen ($98 billion) between March 8 and 15, while deposits at the top 25 banks fell by about 8.8 trillion yen ($67 billion), according to Federal Reserve data. dollar) deposits were increasing. This suggests that customers have moved their deposits to banks that are seen as larger and less likely to fail.

Inflows into money market funds (MMFs) also picked up, according to Investment Company Institute data.

On the other hand, the price of the crypto asset (virtual currency) Bitcoin (BTC) has risen by 35% in the past two weeks, and there is also a view that US investors are buying it.

Cryptocurrency information site Matrixport analyzes as follows.

Source: Matrixport

Bitcoin has surged 44% since March 10. 31% of the increase occurred during U.S. time, signaling that the stock is being bought mainly by Americans.

He added that if the Fed’s quantitative tightening comes to an end and inflation falls, Bitcoin has room to rise further. Matrixport’s head of research and strategy, Markus Thielin, has analyzed that 47% of the buy deals that drove BTC’s price increase were made by US institutional investors.

Robert Kiyosaki’s view

Robert Kiyosaki, author of “Rich Dad, Poor Dad,” also recommends investing in Bitcoin, gold, and silver.

Kiyosaki cautioned that inflation will not be “temporary” as Fed Chairman Jerome Powell put it, and that prices will continue to rise over the next few years.

It accuses the Fed of exacerbating the situation by constantly raising interest rates and printing more money, which it goes on to say risks depressing the value of stocks, bonds, real estate and the U.S. dollar.

He also pointed out that the underlying blockchain technology, such as Bitcoin, would be an alternative to the Fed’s monetary policy. Blockchain could play a role in the auditing of the financial system because it can increase transparency and accountability.

bearish view

Currently, more and more people are bullish on Bitcoin. For example, Balaji Srinivasan, former chief technology officer of major US virtual currency exchange Coinbase, said on the 18th that Bitcoin will reach $ 1 million (equivalent to 130 million yen) in the next three months. presented an incredible view.

By way of background, Srinivasan warns of the possibility of hyperinflation in the United States and believes the global economy is on the brink of rapid change with a series of US bank failures. Some, however, see Srinivasan’s remarks as a way to draw attention to Bitcoin.

connectionFormer Coinbase CTO warns of US dollar hyperinflation, bets on Bitcoin reaching $1 million

On the other hand, many analysts predict that the price of Bitcoin will fall in the future. Nicholas Merten, host of the YouTube show DataDash about cryptocurrencies, said:

Bitcoin, like other assets, is reaching a point where the Fed can no longer bail out with monetary easing as it has in the past, and that should be kept in mind.

Since the Covid-19 pandemic began, the Fed has printed more U.S. dollars, which also contributed to the rise in Bitcoin prices in 2021, but this time, the situation is different.

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