Crypto market in 'extreme fear' while mega-banks return billions — long JPMorgan and Goldman
While crypto markets are crashing and investors are panicking, the biggest banks in the US just passed their annual health check and are planning massive payouts to shareholders. At the same time, the Federal Reserve is seeing a glimmer of hope on inflation, suggesting they might be done crushing the economy with high interest rates.
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Bitcoin is crashing to 21-month lows, signaling 'extreme fear' as speculative assets get punished by high inflation and a rough macro environment. However, the real economy is proving much more resilient — all 32 large banks just passed the Federal Reserve's strict stress test, allowing giants like JPMorgan and Goldman Sachs to launch massive $50 billion buybacks. With a Fed official simultaneously noting a 'glimmer of hope' on inflation, money is likely to rotate out of crashing crypto and into the relative safety and yield of major bank stocks.