While 2022 was one of the worst fears for the cryptocurrency realm, with some of the largest players plummeting, 2023 proved to be the nightmare for large banks. From the fall of Signature Bank to the Silicon Valley bank and also Silvergate, the impact has had repercussions all over the market.
Also read: Shiba Inu: Shibarium Blockchain Beta Now Live
With cryptocurrency prices plummeting and stock prices dropping, the effect on the macro market is notable. In the current scenario, where Treasury bonds are surging and two-year yields are at their lowest, investors expect policymakers to halt interest rate increases. Fed swaps also indicate that there is less than a one in two chance that there will be another quarter-point hike.
Is the worst of the market incoming?
The two-year Treasury note yields, which are most susceptible to changes in policy, dropped 60 basis points to less than 3.99%, the biggest drop since October. This is another indication that the FED is unlikely to raise interest rates in March.
Goldman Sachs economists no longer see a reason for the Federal Reserve to raise rates at its meeting next week due to the “recent stress” in the financial sector. In a recent note, he mentioned that they don’t expect the FED to hike rates in March.