• Gold is pricing in global financial distress while oil prices are facing a recession.
• Bitcoin reacted to the news of contagion spread and has risen by 25% from its lows.
• Crude oil, an indicator of inflation and recession, has plummeted by 15% in the past month.
Financial Distress Priced Into Gold
Gold is reflecting global financial uncertainty with a 5% rise since Friday’s session when Bitcoin touched its low of $19,500 due to the fallout of SVB. This suggests that markets are aware that further contagion may spread as rate hikes at this moment in time are planned to go ahead.
Bitcoin Reacts To News Of Contagion Spread
Bitcoin reacted to the news of contagion spread by increasing 25% from its lows on Friday. This suggests that investors believe there will be an increase in demand for safe-haven assets such as Bitcoin as there is continued global financial distress.
Oil Prices Predict Economic Downturn
Crude oil, an indicator of inflation and recession, has plummeted by 15% over the past month which could suggest that there is an economic downturn occurring or about to occur. This indicates that investors are pessimistic about future economic growth and could be preparing for a prolonged period of economic hardship.
Credit Suisse Major Headlines
Credit Suisse got major headlines due to their involvement with SVB’s fallout but it can be assumed that contagion may spread further if rate hikes go ahead as planned at this stage in time.
In conclusion, gold appears to reflect global financial uncertainty while oil prices predict an upcoming or ongoing economic downturn. Further developments need to be monitored closely so investors can make informed decisions about their investments during times of market volatility and uncertainty.