• Gold reflects financial uncertainty, while oil predicts economic downturn
• Bitcoin touched the low of $19,500 due to the fallout of SVB, further contagion spread into Europe.
• Credit Suisse has got major headlines, but we can suppose contagion may spread further as rate hikes at this moment in time are planning to go ahead.
Gold and Global Financial Distress
Gold is pricing in global financial distress due to the recent news of SVB’s fallout and the potential for further contagion spreading into Europe. This has been reflected in Friday’s session where Bitcoin touched the low of $19,500 and gold was up 5%.
Oil Prices and Economic Downturn
Oil prices have plummeted by 15% in the past month which could indicate an upcoming recession. Oil is seen as an indicator of both inflation and recession which means it can be used to predict future economic trends.
Credit Suisse Contagion
Credit Suisse has made major headlines recently but there is a possibility that contagion may spread further if rate hikes are still planned for this moment in time.
Bitcoin Price Action
Despite the turmoil, Bitcoin is up 25% from its lows and could be making markets aware of global financial distress. It remains unclear what other consequences this could lead to but it is certainly something worth watching out for.
Overall, gold is pricing in global financial distress while oil prices point to an impending economic downturn. Credit Suisse has also been affected by all these changes but it remains to be seen how far reaching their impact will be. Finally, despite all this volatility Bitcoin has managed to remain relatively stable with only a 25% drop from its highs.