The cryptocurrency markets went into a tailspin on Friday, March 10, after eight of the top 10 stablecoins got depegged from their $1 peg. A handful of exchanges, including Binance, temporarily paused USDC withdrawals until the banks are open on Monday. However, the stablecoins are now recovering their peg from the fall, while withdrawals are resumed.
A leading financial author who predicted the Lehman Brothers collapse in 2008 has warned that the stock markets could crash in the next 60 days. If the stock markets crash, the cryptocurrency markets might go down along with it.
Also Read: US Regulators Have Closed Signature Bank
Stock & Cryptocurrency Markets Might Crash within 60 Days
Larry McDonald, financial author and the founder of The Bear Traps Report, predicted that the stock markets could crash within the next 60 days.
In a recent interview with Fox News, McDonald warned that middle-class families across America are “withdrawing capital” from banks at a “spectacular” rate. He added that the record withdrawal volume can set the stage for economic turmoil.
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McDonald claims that Fed chair Jerome Powell’s aggressive stance on increasing interest rates adds further fuel to the upcoming crash. “They’re playing catch up. While they were doing quantitative easing in 2021, inflation started to rage, now they’re trying to catch up,” he said.
The best-selling author of the Lehman Brothers collapse cautioned that the stock and cryptocurrency markets could crash in 60 days. “Our 21 Lehman systemic risk indicators that look at equity and credit point to one of the highest probabilities of a crash in the stock market looking out 60 days,” he said.
Also Read: Coinbase Holds $240M in Signature Bank: Expects to “Fully Recover” Funds
The Silicon Valley Bank collapse, de-pegging of stablecoins, and US regulator’s closure of Signature Bank all point towards financial turmoil. The next few weeks may define what course the stock and cryptocurrency markets would take in 2023.