All Eyes On Bitcoin and Gold As US Banks Borrowed $550B This Week

That’s a wrap to one of the craziest weeks on record for Central Bank tracking! In a week that saw US banks borrow $550B from various Federal Reserve programs, the tech-heavy NASDAQ and Gold rallied 6% each and Bitcoin ERUPTED for 35% to the upside.

More on Bitcoin. Bitcoin emerged with a strong narrative this week. In a world where inflation is spiraling out of control, where politicians and central bankers can’t stop spending and printing money, we know exactly how many bitcoins will ever be in existence, and we know exactly the rate in which new bitcoins will be created in perpetuity. There will only ever be 21 million, and there are already 19.4m in circulation right now.

It’s a game of musical chairs and people are waking up to it.

As we covered in yesterday’s email, analysts are still unpacking the implications of the newly announced BTFP (Bank Term Funding Program).

• The Fed’s balance sheet reduction plans have reversed

• Banks can cumulatively unload about $2 trillion in bad investments at breakeven to the Fed

• While markets still expect the Fed to raise interest rates by 0.25% next week, they expect the Fed to reverse course and start lowering rates later this year.

WHAT WE OWN

$BTC, $ETH, $NVDA, $AAPL, $COIN, $XOM, $TSLA, $MSFT, $AMZN

Want our concise thesis on each asset? Refer a friend to The BRRR and we’ll send you the doc! Here’s how ⬇️

FRIDAY RECAP

• Dow Jones fell 1.31%, S&P 500 lost 1.17%, Nasdaq Composite dropped 0.8% on Friday

• The banking sector crisis and recession concerns were major concerns, and financial stocks were down the most.

• SVB Financial Group announced Chapter 11 bankruptcy protection.

• The S&P Banking and KBW Regional Banking indices both plunged about 21% in the past two weeks.

• First Republic Bank, PacWest Bancorp, and Western Alliance fell.

Reuters

TWEET OF THE DAY

Reasonable roadmap from Ryan Selkis here.