Michael Burry, who is legendary for shorting the 2007 mortgage bond market, is as soon as once more hinting at a market backside within the present situation. This comes after he lately mentioned it has been the identical state of affairs now in comparison with the banking disaster in 2003 and 2008. Burry indicated that ‘stupid’ dangers result in failure, drawing parallel with the present context after the failure of the Silicon Valley Bank and the Signature Bank.
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SVB Rescue To Trigger Market Collapse?
The investor referred to the instance of JP Morgan pledging cash within the context of the Knickerbocker Crisis in 1907. In the context of the Silicon Valley Bank collapse, the US regulators intervened to guard deposits of the financial institution’s clients. Hence, he made refined reference that the markets may backside on account of this intervention, just like the JP Morgan motion. Does this imply the Bitcoin price would additional rally given the current habits?
“In October 1907, Knickerbocker Trust failed on account of dangerous bets, sparking a panic. Two others quickly failed, and it unfold. When a run started on a wholesome Trust, J.P. Morgan made a stand. 3 weeks later the Panic resolved & markets bottomed.
A stand was made this previous weekend.”
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The Federal Deposit Insurance Corp (FDIC) is at the moment attempting to conduct an public sale course of for locating patrons for the Silicon Valley Bank. Meanwhile, the crypto market took an inverse correlation with the US banking sector as Bitcoin breached the $26,000 milestone on Tuesday. Hence, will BTC breach $30,000 mark in coming weeks if a market collapse materializes?
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