coinedition.com
Metaverse enthusiast James Bull tweeted that the outcome of an emergency FED meeting scheduled for Monday, March 13, 2023, could significantly affect the crypto market in the coming week. Bull thinks that the financial authorities might lower interest rates to protect banks from facing the type of problems encountered by Silicon Valley Bank.
Bull also noted the possibilities of another fundamental indicator, CPI, to be released following the FED’s emergency meeting. According to Bull, an actual CPI figure higher than the forecast would initiate a price pump in the market, while prices will dump if the figure falls below expectations.
Next week is huge.
— James Bull (@MariusCrypt0) March 11, 2023
On Mon, FED emergency meeting and they might announce lowering interest to prevent other banks with locked-in bonds from running into the same issue.
On Tue, bullish CPI release. Markets will pump huge if it’s better than the forecast & dump if it’s weaker.
Federal Reserve Board of Governors fixed a closed-door emergency meeting for 11:30 a.m. on March 13, 2023. According to an announcement, the policy-making institution purposed for the “Review and determination by the Board of Governors of the advance and discount rates to be charged by the Federal Reserve Banks.”
Prevailing public opinions suggest that the financial authority fixed the emergency meeting because of the sudden collapse of Silicon Valley Bank (SIVB) whose assets have been seized by the Federal Deposit Insurance Corporation (FDIC).
The SIVB collapse is unprecedented and represents the second-largest bank failure in the history of the United States. It is the largest bank failure since the infamous financial crisis of 2008.
SIVB went down last Friday, throwing the banking sector into panic heading into the weekend. The full extent of the damage done to the industry is yet to be realized as the status of billions of dollars of uninsured deposits is unknown heading into the new week.
The FED fixed the emergency meeting one week before a meeting originally scheduled for March 21 – 22, 2023. Apart from the FED meeting and CPI figures, other events expected to affect the market in the coming week include the UK budget and the outcome of the ECB meeting.