2023-04-20 09:05:06
The amount of deposits in American banks has declined to an extent not seen since the 1980s. According to the data, there was a 22% drop in March.
Looking at history, this value can be said to be significantly higher than during the 2008 crisis, when deposits decreased by 10%. The only time there was a bigger fall than the current one was in 1981, when the amount of deposits held in banks decreased by 38% in one month. This is the amount in one year It fell from $18.2 trillion to $17.2 trillion.
The amount of money M2 (cash, bank deposits, liquid household savings) fell for the first time in almost a century, by 3% to be exact.
It changed from the peak of 21.7 trillion dollars in July to 21 trillion dollars, which can be said to be a significant drop compared to recent decades. Notably, US national debt is 50% higher than total M2. Currently, the debt is $31 trillion and might grow by as much as $1 trillion per year.
A shakeup of the banking sector
During the chaotic period of the past few weeks, people’s confidence in the banking system was shaken, and not without reason. After the collapse of Silicon Valley Bank, Signature Bank, Silvergate Bank, and Credit Suisse, everyone wondered which major bank would fail next. It is worth mentioning that, parallel to the spread of the banking crisis, the crypto market enjoyed significant growth. Some believe that in such an unpredictable period, cryptocurrencies are their only refuge. And this can have an extremely positive effect on digital devices in the long term.
The next few months will be one of uncertainty in traditional finance as the market continues to wonder if the March crisis was the end of something, or rather the beginning.
Published on the BitcoinBázis page.
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