Analyst Warns of US Banking Sector Troubles, Foresees Stock Market and Bitcoin Slide

• Analyst Gareth Soloway Discusses Banking Sector Volatility, Impending Stock Market Crash, and Bitcoin’s Fate

While U.S. federal regulators, including the Federal Deposit Insurance Corporation (FDIC) and the Federal Reserve, have identified concerns with the crisis management tactics of four banks, in a recent interview with Kitco, market strategist Gareth Soloway expressed concerns. 

Soloway suggests something is “amiss” in the U.S. banking sector and claims that major banks are shedding substantial amounts of bad debt.

Gareth Soloway Discusses Banking Sector Volatility, Impending Stock Market Crash, and Bitcoin’s Fate

This past week, the FDIC and Federal Reserve noted deficiencies in the living wills presented by Bank of America, Citigroup, Goldman Sachs, and JPMorgan Chase. 

Furthermore, several analysts have raised doubts about the stability of the U.S. banking system, and some anticipate a notable correction in the equities markets.

In a recent Kitco interview led by Michelle Makori, the media company’s lead anchor and editor-in-chief, Gareth Soloway, chief market strategist at verifiedinvesting.com, highlighted emerging weaknesses in the US banking sector. 

“I’m hearing a lot of chatter about the big banks unloading bad debt right now, trying to get ahead of some sort of crisis looming,” Soloway explained to Makori.

The market strategist added:

Because interest rates are so high, the amount of losses in mortgage-backed securities potentially rivals what we saw in 2008 and 2009. 

In addition, the commercial real estate market is in tatters. And these are all things that banks are holding on their balance sheets.

According to Soloway, there has been a technical deterioration in the stock performance of major banks, including JPMorgan. 

He noted that JPMorgan has recently experienced a trend line breakdown, and Citigroup has already “broken down.” 

Soloway pointed out indicators of underlying issues within the banking sector and mentioned that some major players are starting to divest from these big banks.

Soloway also touched on the significant ascent of Nvidia and discussed gold, silver, and bitcoin (BTC). 

He mentioned, “As long as the stock market continues to make all-time highs, it’s going to make it almost impossible for bitcoin to have any sort of meaningful major pullback.” 

He anticipates bitcoin could retract to the $50,000 range, particularly if the Fed plays hardball with the market. “If the Fed caters to the market, [bitcoin] may not sell off in the near term,” Soloway added.

Makori inquired if Soloway believes BTC will reach an all-time high before experiencing a downturn along with a significant equities sell-off. 

“That’s a tough one,” the analyst said. “We’re so close, I mean we are literally $6,000 away from an all-time high right now, um, to be honest, I don’t know, and I’ll just be honest with you guys, I wish I could give you one way or other, I will just say this that again if the stock market tops out, then I don’t think bitcoin sees a new high until we see a bigger flush out in the stock market, and the stock market starts to recover.”

What do you think about Soloway’s perspective and opinion? Share your thoughts and opinions about this subject in the comments section below.