{"id":563698,"date":"2023-03-15T00:50:00","date_gmt":"2023-03-14T21:50:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/us-banking-system-outlook-downgraded-to-negative-following-recent-bank-failures\/"},"modified":"2023-03-15T00:50:00","modified_gmt":"2023-03-14T21:50:00","slug":"us-banking-system-outlook-downgraded-to-negative-following-recent-bank-failures","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/us-banking-system-outlook-downgraded-to-negative-following-recent-bank-failures\/","title":{"rendered":"# US banking system outlook downgraded to &#8216;negative&#8217; following recent bank failures"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a36e7dc2498a\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a36e7dc2498a\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/us-banking-system-outlook-downgraded-to-negative-following-recent-bank-failures\/#%E2%80%9D_US_banking_system_outlook_downgraded_to_%E2%80%98negative_following_recent_bank_failures_%E2%80%9C\" >&#8221; US banking system outlook downgraded to &#8216;negative&#8217; following recent bank failures  &#8220;<\/a><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_US_banking_system_outlook_downgraded_to_%E2%80%98negative_following_recent_bank_failures_%E2%80%9C\"><\/span>&#8221; US banking system outlook downgraded to &#8216;negative&#8217; following recent bank failures  &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<p><img decoding=\"async\" src=\"https:\/\/images.cointelegraph.com\/images\/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjMtMDMvNjI2NzU4OGEtYjI3OS00ZWVkLTk3NTItNjJkODU3MmFlOWI3LmpwZw==.jpg\" \/><\/p>\n<div class=\"post-content\" data-v-48054ca8>Credit rating agency Moody&#8217;s, has recently downgraded its outlook on the entire US banking system from &#8220;stable&#8221; to &#8220;negative.&#8221; The move comes in light of recent bank failures of Silicon Valley Bank, Silvergate Bank, and Signature Bank, which has prompted regulators to intervene with a rescue plan for impacted depositors and institutions.\u00a0<\/p>\n<p>Despite the downgrade, bank stocks rallied strongly, with the SPDR Bank exchange-traded fund rising nearly 6.5% in morning trade, NBC <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.nbcnews.com\/business\/business-news\/moodys-cuts-outlook-us-banking-system-negative-rcna74893\" data-amp=\"https:\/\/www-nbcnews-com.cdn.ampproject.org\/c\/s\/www.nbcnews.com\/news\/amp\/rcna74893\">reported<\/a>. Moodys reportedly noted that an extended period of low rates combined with pandemic-related fiscal and monetary stimulus have complicated bank operations. Banks with substantial unrealized securities losses and non-retail and uninsured US depositors may still be at risk, according to Moody\u2019s.<\/p>\n<p>Moody\u2019s expects the US economy to fall into recession later this year, further pressuring the financial industry. Given the recent downgrade by Moody&#8217;s, it is clear that traditional banking systems are struggling to cope with the demands and challenges of our world today. As interest rates rise and the economy enters a recession, it is likely that more banks could potentially fail, leaving more depositors vulnerable.<\/p>\n<p>Some crypto enthusiasts believe that cryptocurrency, especially Bitcoin, was created for a time like this, as its birth was inspired by the\u00a02008 financial crisis.\u00a0 In response to the brewing financial crises and bank collapses, Bitcoin&#8217;s price surged to its highest level since June 2022, breaking the $26,000 mark.\u00a0<\/p>\n<p><a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">Twitter<\/a> user @luke_broyles shared the opinion that this why more people should adopt Bitcoin:<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">Folks, get you some <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/hashtag\/Bitcoin?src=hash&amp;ref_src=twsrc%5Etfw\">#Bitcoin<\/a> and then get said <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/hashtag\/Bitcoin?src=hash&amp;ref_src=twsrc%5Etfw\">#Bitcoin<\/a> off the exchanges.<\/p>\n<p>If banks or investors start seriously considering the possibility of &#8220;QE and FDIC infinity&#8221; <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/hashtag\/Bitcoin?src=hash&amp;ref_src=twsrc%5Etfw\">#Bitcoin<\/a> is going much higher than $25,000 and is never going back down.<\/p>\n<p>Be cautious.<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/dlxtSfpZSE\" data-amp=\"https:\/\/www-cnbc-com.cdn.ampproject.org\/c\/s\/www.cnbc.com\/amp\/2023\/03\/14\/moodys-cuts-outlook-on-us-banking-system-to-negative-citing-rapidly-deteriorating-operating-environment.html\">https:\/\/t.co\/dlxtSfpZSE<\/a><\/p>\n<p>\u2014 Luke Broyles (@luke_broyles) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/luke_broyles\/status\/1635665590990913536?ref_src=twsrc%5Etfw\">March 14, 2023<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>For crypto enthusiasts, Blockchain-based assets such as Bitcoin are a great alternative to the failing traditional banking system.\u00a0<\/p>\n<p>In an interview with Cointelegraph,\u00a0Trezor Bitcoin analyst Josef T\u011btek, shared that the current sharp rise of Bitcoin\u2019s price <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>ears to be a direct result of the \u201capparent fragility of the banking system.\u201d\u00a0T\u011btek noted that the current banking crisis could potentially make Bitcoin emerge as a safe haven and risk-off asset. He emphasized that Bitcoin was created soon after the world encountered the financial crisis of 2008 and was \u201clikely a response to the unfairness of bailouts.\u201d<\/p>\n<p>According to T\u011btek, the recent bank failures clearly show that counter-party risk in the banking system is a \u201cserious problem,\u201d though it is sometimes well hidden. He said:<\/p>\n<blockquote><p>\u201cBanks no longer actually hold our money, but lend it out and buy volatile assets with it. Depositors are, in fact, the banks\u2019 creditors. Understandably, people are looking for alternatives such as Bitcoin.\u201d<\/p><\/blockquote>\n<p><strong><em>Related:\u00a0Bitcoin price breaks $26K as US inflation comes in at 6%<\/em><\/strong><\/p>\n<p>By providing a more secure, transparent, and efficient financial system, many <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/technology\/\" data-internallinksmanager029f6b8e52c=\"4\" title=\"Technology\" target=\"_blank\" rel=\"noopener\">technology<\/a> enthusiasts believe that blockchain-based finance and cryptocurrencies such as Bitcoin can play a crucial role in mitigating the risks of traditional banking, and ensure that individuals and businesses have access to the financial services they need.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">That\u2019s why it was created! Finally everyone can see why.<\/p>\n<p>\u2014 Mark Uretsky (@MarkUretsky) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/MarkUretsky\/status\/1635306322882334721?ref_src=twsrc%5Etfw\">March 13, 2023<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more News articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/us-banking-system-outlook-downgraded-to-negative-following-recent-bank-failures\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; US banking system outlook downgraded to &#8216;negative&#8217; following recent bank failures &#8220; Credit rating agency Moody&#8217;s, has recently downgraded its outlook on the entire US banking system from &#8220;stable&#8221; to &#8220;negative.&#8221; The move comes in light of recent bank failures of Silicon Valley Bank, Silvergate Bank, and Signature Bank, which has prompted regulators to&#8230;<\/p>\n","protected":false},"author":1,"featured_media":563699,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/cdn-cgi\/image\/format=auto,onerror=redirect,quality=90,width=1200\/https:\/\/s3.cointelegraph.com\/uploads\/2023-03\/6267588a-b279-4eed-9752-62d8572ae9b7.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74862,74894,74863,93542,73711,73785,4965],"class_list":["post-563698","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-bitcoin","tag-blockchain","tag-cryptocurrencies","tag-web3","tag-investments","tag-markets","tag-technology"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/563698","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=563698"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/563698\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/563699"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=563698"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=563698"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=563698"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}