Deep dives into Altcoin trends, Macro shifts, and On-chain data. I focus on logic over luck and risk management over moonshots. (NOT FINANCIAL ADVISOR)
$306 BILLION IN BANKING SYSTEM PRESSURE — HERE’S WHY IT MATTERS
U.S. banks are sitting on roughly $306 billion in unrealized losses, mostly from bond portfolios crushed by rising interest rates.
Here’s the mechanics 👇 When rates go up, old low-yield bonds drop in value. Banks loaded up on these bonds during the low-rate era. Now those positions are deeply underwater — especially in Held-to-Maturity (HTM) and Available-for-Sale (AFS) portfolios. These are “paper losses” — no panic unless they’re forced to sell.
But here’s the risk: If liquidity tightens, deposits leave, or funding costs rise, banks may need to sell assets at a loss. That’s when unrealized losses become realized losses — and that’s when volatility enters the market.
For traders, this means: • Watch interest rate expectations • Monitor bond yields (especially US Treasuries) • Track bank liquidity stress