Gold Prices Soar as Global Financial Stress Mounts

• Gold reflects financial uncertainty while oil predicts economic downturn
• Bitcoin touched the low of $19,500 due to the fallout of SVB
• Crude oil has plummeted by 15% in the past month

Gold Prices Reflecting Global Financial Distress

During Friday’s session, when Bitcoin touched the low of $19,500 due to the fallout of SVB, further contagion spread into Europe. As a result, gold is up 5%, reflecting global financial distress and uncertainty. Credit Suisse has got major headlines and rate hikes are planning to go ahead which could lead to more contagion.

Oil Prices Predict Economic Downturn

James Van Straten, research analyst at CryptoSlate believes that oil prices can be used as an indicator for inflation and recession. Over the past month crude oil has plummeted by 15% indicating an economic downturn.

Bitcoin Price Movement

Bitcoin price movement can also provide insight into global financial health. After hitting its low on Friday it is now up 25%. This could be evidence that markets are aware of global financial distress and that further fallout is unknown.

Silvergate Bank Postmortem

CryptoSlate recently released a report dissecting Silvergate Bank’s demise to understand why it went under and what other banking giants could learn from its experience. It found that poor management decisions combined with decreased demand for crypto services were key factors contributing to its downfall.

Conclusion

Gold is pricing in global financial distress while oil prices are predicting an economic downturn. Bitcoin price movement indicates that markets are aware of this distress but further fallout remains unknown. CryptoSlate’s latest report provides insight into Silvergate Bank’s failure and what other banking giants can learn from it.