Cryptocurrency markets took a nosedive on Friday, March 10, after eight of the top 10 stablecoins depegged from their $1 peg. A handful of exchanges, including Binance, have temporarily paused USDC withdrawals until banks are open on Monday. However, stablecoins are now regaining their parity from the crash, while withdrawals resume.
A leading financial author who predicted the collapse of Lehman Brothers in 2008 warned that stock markets could crash in the next 60 days. If the stock markets crash, the cryptocurrency markets could fall along with it.
Also read: US regulators have closed Signature Bank
Stock and Cryptocurrency Markets Could Crash in 60 Days
Larry McDonald, financial author and founder of The Bear Traps Report, predicted that the stock markets could crash in the next 60 days.
In a recent interview with foxnewsMcDonald's warned that middle-class families across the United States are "withdrawing capital" from banks at a "spectacular" rate. He added that the record withdrawal volume may set the stage for economic turmoil.
Also read: 100% of USDC reserves are safe: Circle CEO
McDonald's says Fed Chairman Jerome Powell's aggressive stance on raising interest rates adds more fuel to the coming meltdown. โThey are playing catch up. While they were doing quantitative easing in 2021, inflation started to rise, now they are trying to catch up.โ he said.
The best-selling author of the Lehman Brothers collapse has warned that the stock and cryptocurrency markets could crash in 60 days. "Our 21 Lehman Systemic Risk Indicators looking at equities and credit point to one of the highest probabilities of a 60-day stock market crash." he said.
Also read: Coinbase Holds $240 Million in Signature Bank: Hopes to "Fully Recover" the Funds
The collapse of Silicon Valley Bank, the decoupling of stablecoins and the closure of Signature Bank by the US regulator point towards financial turmoil. The next few weeks may define what course the equity and cryptocurrency markets will take in 2023.
